Why the US is Always Hitting a "Debt Ceiling"?

When a company has a long history of paying people on time, there are given a _______ credit rating?

• CC

• BBB

• A

• AAA

The riskier the grade or credit rating, the lower the interest rate a company pay its investors. (Hint: Corporate Bonds)

• True

• False

Answer explanation

The riskier the grade, the higher the interest rate.

Countries have grades or ratings as well.

• True

• False

A limit on how much debt a country can take on or the maximum amount of money that the United States can borrow is called the _____ ________.

If the national debt reaches that limit, the US might will definitely be

able to pay its investors.

• True

• False

Answer explanation

If the national debt reaches that limit, the US might not be able to pay its investors.

In , the United States was downgraded by a credit agency for the first time, due to “political risks” and since then Congress, as well as, the President have chosen to raise the debt ceiling ​ ​ (a)   more times.

(b)  

• 7
• 2011
• 2001
• 1980
• 3
• 5

The US takes on more debt when the country spends a lot because of​ (a)   , or because of ​ (b)   needed during ​ (c)   and now, ​ (d)   .

• wars
• investments
• recessions
• pandemics

A government department that collect taxes and spend them to fund the government is called __________.

• Department of Labor

• Department of State

• Department of Treasury

• Department of Interior

It's Congress and the President who decide how much taxes should be, and where the money should be spent.

• True

• False

The Treasury Department approve more ​ (a)   than they bring in with ​ (b)   and make up that difference by taking on ​ (c)   , by selling ​ (d)   .​

• spending
• taxes
• debt
• bonds
• stocks
• laws