A bond issued by the government represents:

Question

a. The government's promise to repay with interest.
b. The amount of taxes the government will collect in the current year.
c. The size of the economy the government is overseeing.
d. The size of the government's budget deficit in the past.

Answer 1

a. The government's promise to repay with interest.

A bond is essentially a loan made by investors to the government, which promises to pay back the borrowed amount (the principal) along with interest at a specified date.