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What is the monetization of debt?

asked by OH (23)

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Tags:  debt  finance  what is

answers

The word debt means the money you owe on loans and credit cards that a person has borrowed. Money you borrow is a debt that has to be paid.

7 votes

Monetization of debt means that the bonds representing the debt are converted into cash. Typically this term is used for government debt, but business debt can also be monetized.

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posted by maximino (17)
6 votes

Corporations sell bonds. Doing this gets people to risk the money they paid for the bond while they earn current interest. Hopefully, the buyer will receive back their purchase funds.

5 votes

This means that the government prints money to pay debt rather than relying on taxes or other revenue sources. It causes inflation, which is a tax on money.

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posted by smoore (20)
5 votes

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