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1. From whence do Government Securities originate? a) The U.S. Treasury as a result of budget...

1. From whence do Government Securities originate?

a) The U.S. Treasury as a result of budget surpluses

b) The U.S. Treasury as a result of budget deficits

c) The Federal Reserve as a result of Open Market Purchases

d) The Federal Reserve as a result of Open Market Sales

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Answer #1

b) The U.S. Treasury as a result of budget deficits

Explanation: When the Government has deficits and it wants to borrow, it issues securities.

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