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Which one of the following methods of government borrowing is most likely to be inflationary?
The sale of:
Suggested Answer: C
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41 comments · newest first
TR
Trinidad
11 months ago
Long-term securities usually aren't that risky for inflation.
JO
Jonelle
11 months ago
Really? I’m surprised D is the answer.
PA
Paola
11 months ago
I thought C could be inflationary too, though.
TH
Thaddeus
12 months ago
Totally agree, D makes sense!
LI
Ligia
12 months ago
D is the most inflationary option.
BR
Brice
1 year ago
I thought that selling to the general public (C) could also be inflationary, but now I’m questioning if it’s as impactful as the banking sector options.
ET
Ettie
1 year ago
I’m torn between B and D. I recall that long-term securities can have different effects depending on who buys them, but I can't remember which one is more inflationary.
TA
Talia
1 year ago
I feel like this question is similar to one we practiced where government borrowing impacts inflation. I think A could be the right choice since it involves the banking sector directly.
ME
Merlyn
1 year ago
I think the answer might be D, but I'm not completely sure. I remember something about how banks can create money when they buy long-term securities.
ST
Stefanie
1 year ago
I'm feeling pretty confident about this one. I think the sale of Treasury bills to the banking sector is the most inflationary, since that expands the money supply the most. The other options are less likely to have that kind of impact.
RO
Roselle
1 year ago
Okay, let's see. The sale of Treasury bills to the banking sector is likely to be the most inflationary, since that directly increases the money supply. The other options seem less likely to have that effect.
SH
Shawnee
1 year ago
Hmm, I'm a bit unsure about this one. I know the different borrowing methods have different effects, but I'm not totally clear on the specifics. Guess I'll have to think it through carefully.
LE
Lenna
1 year ago
This one seems pretty straightforward. I think the key is to focus on how the different borrowing methods impact the money supply and inflation.
IZ
Izetta
1 year ago
This is a tricky one, but I think I can figure it out. I'll need to make sure I'm discounting the cash flows correctly and accounting for all the relevant costs. The sensitivity analysis part might be a bit trickier, but I'll give it my best shot.
EL
Elmer
1 year ago
The standard Data Classification report in option A might be a good starting point, but it sounds like the compliance team wants more granular details. I think option B or D would be the way to go to get that field-level information.
RO
Rozella
1 year ago
I'm a little confused by this question. I'm not sure if Outlook automatically creates Meetings or Contacts for messages. I'll have to think about this more.
HO
Hoa
1 year ago
The Managed, Defined, and Repeatable levels sound familiar, but I can't recall if Fundamental is a real one. I'll have to make an educated guess on this.
LU
Luz
1 year ago
Option A? More like 'Trea$ury bills to the banking $ector'. Inflation, here we come!
KE
Keneth
1 year ago
I think selling national savings securities to the general public can also lead to inflation.
CR
Cruz
1 year ago
C) National savings securities to the general public
VA
Val
1 year ago
Yeah, selling treasury bills to the banking sector can definitely be inflationary.
NO
Norah
1 year ago
A) Treasury bills to the banking sector
MA
Marget
1 year ago
Ah, the age-old question of which method of borrowing is the least inflationary. I'm just hoping the answer isn't 'All of the above'!
VA
Val
1 year ago
C) National savings securities to the general public
ES
Essie
1 year ago
B) Long-term securities to insurance companies and pension funds
FL
Florinda
1 year ago
A) Treasury bills to the banking sector
OR
Oretha
2 years ago
Hmm, B seems like the safest bet. Insurance companies and pension funds are less likely to go on a spending spree with those long-term securities.
BE
Bernadine
1 year ago
C) National savings securities to the general public
TH
Theola
1 year ago
B) Long-term securities to insurance companies and pension funds
LA
Lavera
1 year ago
A) Treasury bills to the banking sector
SI
Silvana
2 years ago
I'm going with C. Selling securities to the general public is less likely to stoke the flames of inflation, right?
SA
Sanjuana
1 year ago
D) Long-term securities to the banking sector
RO
Rolland
1 year ago
C) National savings securities to the general public
ST
Stevie
1 year ago
B) Long-term securities to insurance companies and pension funds
DA
Danica
1 year ago
A) Treasury bills to the banking sector
CA
Carmela
2 years ago
I see your point, Lynelle. Selling long-term securities to insurance companies and pension funds could lead to increased demand for credit, potentially causing inflation.
LY
Lynelle
2 years ago
I disagree, I believe the sale of long-term securities to insurance companies and pension funds could be more inflationary.
AR
Ardella
2 years ago
Option D, definitely! Borrowing from the banking sector is like pouring gasoline on the fire of inflation.
TI
Tiera
1 year ago
I agree, borrowing from the banking sector can lead to an increase in the money supply and drive up prices.
DA
Dana
1 year ago
Option D, definitely! Borrowing from the banking sector is like pouring gasoline on the fire of inflation.
RO
Rolland
2 years ago
I think the sale of Treasury bills to the banking sector is most likely to be inflationary.