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Dominik [7]
4 years ago
15

Why would the US government purchase government securities from private bond holders ?

History
1 answer:
Umnica [9.8K]4 years ago
7 0

Answer:

Government Securities have constructive impact on the business environment and economic development of any nation in the following reasons :

• Low default risk: Government securities are considered low-risk investments because they are backed by the taxing power of a government. Investment in U.S. treasury securities is probably the safest investment.

• Government securities are issued is to raise funds for government expenditures. The federal government issues Treasury securities to cover shortfalls (deficits) in its annual budget.

• Controlling Money Supply: If the Federal Reserve wants to slow the growth rate of money in the economy, it will sell government securities. This means that it is sucking up dollars from the economy and replacing them with government securities, which results in a slowing of the rate of growth in the money supply. Slowing the rate of money's growth in an economy will help keep inflation under control.

• Some government securities are exempt from state and local taxes.

Explanation:

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Hope this helped :)
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Step one:
Scrat [10]

June 1805  

(Sacagawea)

Dear Diary:  

Today I realized that Everybody likes Sacagawea on the expedition. I noticed how Clark was so fond of her that he offered to educate her little boy. The soldiers look at her with admiration. Early in the moning we had an encounter with the Shoshone in western Montana she kept cool in the moment of crises and She was useful as a translator.  Time for luch some edible greens and roots in the High Plains that Sacagawea spotted.

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Dear Diary:

Today We learned Captain  Lewis and  Lieutenant Clark are good leaders. Two weeks ago we got lost. We came to a fork in the Missouri at the Mandan´s villages that was not mentioned. We have maps of the lower Missouri but not beyond. There was doubt about which river was the Missouri. Captain  Lewis and  Lieutenant Clark had sent separate reconnaissance expeditions. They decided the south fork was the true Missouri, Every one disagreed but  we followed them anyway because they are good leaders and in the end they were right.

(York, Captain Clark´s slave)

Dear Diary:

Today we ate dog for the first time.. York, Captain Clark´s slave, ate happily while the rest of us just hardly managed to swallow it.  

Early this morning we met some tribesmen who were terrified at York´s black skin. They thought he was the devil and had come back to haunt them.


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Help!!! Holocaust!!!!
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