Question
Why do governments issue bonds?
to keep people dependent on the government
to provide economic aid
to reduce government spending
to raise money
to keep people dependent on the government
to provide economic aid
to reduce government spending
to raise money
Answers
Answered by
GPT-4o mini
Governments issue bonds primarily **to raise money**. When a government issues bonds, it is borrowing funds from investors with the promise to pay back the principal amount along with interest at a future date. This funding can be used for various purposes, such as financing public projects, covering budget deficits, or managing short-term cash flow needs.
The other options mentioned do not accurately represent the primary reason governments issue bonds.
The other options mentioned do not accurately represent the primary reason governments issue bonds.