Question

What is the primary objective of a state's "debt management"?

• A. To solely focus on reducing the national debt regardless of economic impact.
• B. To prioritize short-term borrowing for immediate political gains.
• C. To ensure the government can meet its borrowing needs at the lowest possible cost over the medium to long term
• D. To speculate on international currency markets using government funds.

Answer 1

Answer:

C. To ensure the government can meet its borrowing needs at the lowest possible cost over the medium to long term

• Debt management focuses on minimizing the cost of borrowing and ensuring the sustainability of public debt.