Question
-------Describe the kinds of securities the Canadian government uses to finance the federal debt. Choose the correct answer below. A. Fixed coupon marketable bonds, more
-------Describe the kinds of securities the Canadian government uses to finance the federal debt. Choose the correct answer below.
A. Fixed coupon marketable bonds, more commonly known as Government of Canada bonds have semi-annual coupons with maturities between 2 and 40 years.
B. Real Return bonds have semi-annual coupons and maturities up to 30 years, with the outstanding principal adjusted for inflation.
C. Cash management bills which are pure discount bonds that are issued with very short maturities such as from one day to less than three months.
D. One type of security used by the Canadian government to finance the federal debt is Treasury bills which are pure discount bonds with maturities of one year or less.
E. All of the above are examples of securities used by the Canadian government to finance the federal debt.
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