Which of the following financial capability indicators is a measure of a government's capacity to issue bonded debt?
A) Revenue dispersion.
B) Property taxes per capita.
C) Bonded debt per capita.
D) Available legal debt limit.

Question

Quizplus · Accepted Answer

The indicator that measures a government's capacity to issue bonded debt is the available legal debt limit. This is the maximum amount of bonded debt a government is legally allowed to issue, and it is determined by various factors including the government's revenue, ability to repay debt, and credit rating. Revenue dispersion and property taxes per capita are indicators of a government's revenue streams and taxation policies, but they do not directly measure the government's capacity to issue bonded debt. Bonded debt per capita is a measure of the outstanding amount of bonded debt per person, but it does not provide information on the government's ability to issue more debt.

Which of the Following Financial Capability Indicators Is a Measure