Question:
The widely used credit instrument in domestic financing budget deficit of Sri Lanka in recent years has been
(1) Treasury Bills.
(2) Treasury Bonds.
(3) Rupee Securities.
(4) Sri Lanka Development Bonds.
(5) Central Bank Advances.
Correct Answer:
(2)
Answer Explanation:
To finance its persistent fiscal deficits domestically, the Sri Lankan government primarily relies on issuing medium to long-term Treasury Bonds, which make up the largest proportion of the domestic debt portfolio, compared to short-term Treasury Bills.
Topic: Public Finance Year: 2017
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