Washington - Debt & Deficit

Which of the following was NOT part of the purpose of establishing a National Bank?

• Pay the Government's bills

• Be the bank for Presidents to use with their salaries

• Provide loans to farmers

• Provide loans to small business

What is GOOD about a country issuing bonds?

• If someone (or some country) has a lot of bonds, the country will have to pay a big amount to them later.

• You have to pay it back to people later.

• The interest that adds up over time is extra money the country has to spend.

• The nation gets money right away to do things for the people.

Alexander Hamilton should be remembered for which of these ideas?

• Urging President Washington to start a National Bank

• Fighting with Jefferson over monetary policies

• Organizing a boycott of goods in New York City

• Being the last person to sign the Declaration of Independence

Which of the following best shows the difference between DEBT and DEFICIT?

• Debt is long term, deficit is short term.

• Debt is bad but deficits are always good

• Deficits don't always lead to debt

• Debt and deficit are good ways for a country to manage money

Spending more than you make over a short time is...

• Treasury

• Debt

• Deficit

• Bond

Owing money to another over time is...

• Bond

• Deficits

• Debt

• Treasury

A country issues a paper that people buy now and get more money from it later is...

• Debt

• Treasury

• Deficit

• Bond