Which financial instrument is commonly used for government borrowing?

Which financial instrument is commonly used for government borrowing?

Step 1: Understand that governments need money for various projects and expenses.
Step 2: Learn that one way governments can get money is by borrowing it.
Step 3: Know that governments borrow money by issuing financial instruments.
Step 4: Identify that the most common financial instrument used for this purpose is called a bond.
Step 5: Realize that when a government issues a bond, it is asking investors to lend them money.
Step 6: Understand that investors buy these bonds, and in return, the government promises to pay them back later with interest.

No concepts available.