The federal government issues which of the following types o

The federal government issues which of the following types of securities to finance the difference in its tax collections and spending. common stock preferred stock treasury bonds perpetuities

Solution

Ans. The federal government issues treasury bonds to finance the difference in its tax collections and spending. T-bonds are fixed-interest debt security with a maturity of more than 10 years of US government. To finance the debt, the U.S. Treasury sells bonds.