Finance infrastructure projects
Cover a fiscal deficit
Meet emergency needs
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. The government may resort to borrowing funds to finance infrastructure projects, cover a fiscal deficit, or meet emergency needs.
- Infrastructure projects are large-scale projects that are essential to the functioning of a country’s economy and society. Examples of infrastructure projects include roads, bridges, airports, and power plants. These projects can be very expensive, and the government may need to borrow money to finance them.
- A fiscal deficit is a situation in which the government spends more money than it takes in through taxes and other revenue. When this happens, the government must borrow money to cover the difference.
- Emergency needs can arise at any time, and the government may need to borrow money to meet them. For example, the government may need to borrow money to respond to a natural disaster or to provide relief to victims of a terrorist attack.
Borrowing money can be a risky proposition, but it can also be a necessary tool for governments to use to finance important projects and meet essential needs.