POLS 207 Lecture Notes - Lecture 8: Revenue Bond, Personal Bankruptcy, Personal Seat License
20 Sep 2016
School
Department
Course
Professor
Document Summary
No answer key to the questions in the book. Governments borrow money through two ways: loan and bonds. Loans government gets money a lot like a personal loan, through a bank. Local government is the one that uses loans sometimes state but never state. A common creditor of state and local government is through the federal government. Local government borrows money from the federal government. Ex: clean water state revolving fund. Local gets the rates at a very low interest rate and it is very simple. Occasionally local government will take out a private loan, very rare. State government does not borrow from financial institutions very often. More common of debt for local state and federal is bonds. The larger the government the more bonds it can lend receive or give. The us government does a lot of bonds. Maturity date when you can reclaim the money.
