Question

Which of the countries shown makes the greatest relative use of short-term government financing?

Answer 1

The country make the greatest relative use of short-term government financing is as follows:

• In many countries, the United States is one country by which government securities are issued o fund operations.
• They have backing by the government of America. Due to this, U.S. Treasury, notes, bonds, bills are considered as risk free assets.
• For this, interest are paid in lower rate in U.S. than other country.