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Deficits cause governments to: Select one:
a. issue bonds
b. issue bonds with 10-year maturity
c. issue bonds with 2-year maturity
Solution
Deficits leads to shortage of funds. To fulfill that government issues bond for a shorter period of
2 years maturity.
Hence the correct option is
C. issue bonds with 2 year maturity.

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  • 1. Deficits cause governments to: Select one: a. issue bonds b. issue bonds with 10-year maturity c. issue bonds with 2-year maturity Solution Deficits leads to shortage of funds. To fulfill that government issues bond for a shorter period of 2 years maturity. Hence the correct option is C. issue bonds with 2 year maturity.