Exam 18: Treasury Auctions, Public Debt, and Government Borrowing: Exploring the Us Treasury System

One possible result of several years of budget surpluses could be to make the U.S. public debt market ______ volatile.

If the Treasury is compelled by a sizable budget deficit to borrow funds from the nonbank public, all of the following effects are likely except one. Which effect is not likely to happen?

An example of a stabilization goal of federal debt management is to:

If the Treasury is compelled by a sizable budget deficit to borrow funds from depository institutions, all of the following effects are likely except one. Which effect is not likely to happen?

Social Security taxes represent approximately 42 percent of all federal budget revenues.

The so-called "equivalence theorem" argues that:

Which of the following statements regarding the Economic Recovery Tax Act of 1982 is false?

Among the most attractive marketable treasury obligations in recent years have been treasury inflation protected securities (TIPS) whose value rose from zero in 1996 to a 2006 value of:

The federal government's budget has been in surplus in only three fiscal years since 1931.

Under the yield auction method, dealers bidding the highest yield receive bills until all available bills are allocated.

Treasury borrowings from either the nonbank public, depositories or Federal Reserve banks tend to increase income and total spending in the economy.

Which of the following statements regarding U.S. Treasury borrowing from the nonbank public is not true?

Treasury borrowing directly from the Federal Reserve is closely monitored by Congress since:

Two activities that the U.S. Treasury pursues on a continuing basis are fiscal policy and debt-management policy.

The gross public debt of the U.S. reached $12 billion in 2009.

To achieve the maximum deflationary impact on the economy, government debt held by depository institutions should be retired.

The total public debt, representing just over half of all interest-bearing U.S. government obligations, in 2006 totaled about:

The gross public debt of the United States is larger than the total volume of mortgage debt outstanding in the U.S. economy.

The proportion of government securities maturing within one year is known as the:

His campaign statement "a public debt is a public curse" helped President Clinton's reelection effort in 1996.