Government can borrow money from the public through
Answer Details
The government can borrow money from the public through the issuing of treasury bills. Treasury bills are short-term securities issued by the government to raise funds. They are sold at a discount and redeemed at their face value, which represents the amount borrowed. This means that investors who purchase treasury bills earn interest on the difference between the purchase price and the face value of the bills when they mature. By issuing treasury bills, the government is able to borrow money from the public at a lower cost compared to other forms of borrowing. This is because treasury bills are considered to be very safe investments, and therefore, they offer a low-risk, low-return investment option for investors.