When the U.S.Treasury issues new bonds to replace bonds that have matured,it is engaging in
A)Debt refinancing.
B)Debt servicing.
C)Income transfers.
D)Discretionary fiscal spending.

Question

Quizplus · Accepted Answer

Debt refinancing means replacing old debts with new debts at a lower interest rate, hence reducing the overall cost of debt. When the U.S. Treasury issues new bonds to replace old bonds that have matured, it is engaging in debt refinancing.