Examkin

Soru

Zorluk: OrtaPublic Debt Types and Management

A government seeking to reduce the servicing cost of its existing long-term obligations replaces a high-interest bond issue with a new loan floated at a significantly lower rate of interest. Which public debt management technique is being utilized in this scenario?

  1. Debt conversionCevap
  2. B
    Debt repudiation
  3. C
    Debt monetization
  4. D
    Sinking fund accumulation

Cevap

Debt conversion
Debt conversion is the public debt management technique where a government replaces an outstanding high-interest loan with a new loan carrying a lower interest rate, reducing the overall public debt servicing burden.

Adım Adım Çözüm

1
Identify the core action described in the scenario
The government is replacing an existing high-interest debt instrument with a new lower-interest loan.
Evaluating the mechanism of replacing existing loan contracts clarifies the debt management technique used.
2
Match the action to debt management terminology
Replacing high-cost public debt with low-cost debt is formally defined as debt conversion.
Debt conversion aims to lighten the interest burden on public revenue without default.

Anahtar Kavram

Public Debt Management and Debt Redemption Techniques
Tahmini Süre:1m 0s
Bu soruyu puanla

Konular

Public Debt Types and Management

Bu konudan daha fazla soru