At what interest rate does a government borrow in its own currency?
A) Treasury rate
B) LIBOR
C) LIBID
D) Repo rate

Question

Quizplus · Accepted Answer

A government typically borrows in its own currency through issuing treasury bonds. The interest rate on these bonds is known as the treasury rate, which is set by the government based on market demand and supply conditions. The other options listed (B, C, and D) are all related to borrowing in foreign currencies, through interbank lending, or through repurchase agreements, and are not directly related to government borrowing in its own currency.

At What Interest Rate Does a Government Borrow in Its