In recent decades, the Federal Government has borrowed money mostly to:
a. finance special expensive projects
b. provide funds for crisis situations such as wars and national disasters
c. pay the president's salary
d. operate the government and pay the previous year's debt.
I'ms tuck between a and d?
I vote for d.
okay thanks!
To determine the correct answer, let's break down the options:
a. Finance special expensive projects: This option suggests that the federal government borrows money mainly to finance specific high-cost projects. While it's true that the government may borrow money for special projects, it does not represent the primary reason for borrowing.
b. Provide funds for crisis situations such as wars and national disasters: This option implies that the government primarily borrows money to fund emergency situations like wars and natural disasters. Although the government may indeed borrow money for such purposes, it is not the main reason for borrowing.
c. Pay the president's salary: This option proposes that borrowing is primarily done to pay the president's salary. However, the president's salary is typically covered by a fixed budget and does not require borrowing.
d. Operate the government and pay the previous year's debt: This option states that the federal government borrows money to fund ongoing operations and cover previous year's debts. This option is correct. The government borrows money to cover its day-to-day operations, such as running government agencies, paying salaries to employees, and funding various programs. Additionally, it borrows to service its accumulated debt from previous years.
Therefore, the correct answer is option d: operate the government and pay the previous year's debt.