national debt

Popular Terms
Total outstanding borrowings of a central government comprising internal (owing to national creditors) and external (owing to foreign creditors) debt incurred in financing its expenditure. National debt is divided generally into three categories: (1) Floating debt, short term borrowings such as treasury bills, various ways-and-means advances, and borrowings from the central bank. (2) Funded debt, short-term debt converted into long-term debt. (3) Unfunded debt, national savings certificates, savings bonds, premium bonds, and securities repayable in foreign exchange (payment of which affects the country's balance of payments).
National debt plays a crucial role in a country's financial system as government securities (being a secure vehicle for investment) form an important part of the reserves of its financial institutions.

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Some economists believe the national debt need never be repaid, but others feel that substantial debt puts the nation at risk, especially when huge amounts are owed to foreign bond holders.
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Some citizens believe that the national debt will never be repaid since the United States government continues to spend more money than it takes in year over year.
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The national debt seems to grown every year which means that nearly all presidential candidates talk about how they would reduce the national debt, but few actually seem able to reduce it once in office.
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