Which of the following institutions assists the government in managing the national debt?
Answer Details
The institution that assists the government in managing the national debt is the Central bank. The Central bank is responsible for implementing monetary policy on behalf of the government. One of the key functions of the Central bank is to regulate the money supply and interest rates in the economy. This involves managing the national debt, which refers to the total amount of money owed by the government to its creditors. The Central bank plays a key role in managing the national debt by buying and selling government securities, which helps to control the supply of money in the economy and influence interest rates. This in turn affects the cost of borrowing for the government and its ability to manage its debt.