If all countries are in debt, then who do they borrow the money from?

Question:

If all countries are in debt, then who do they borrow the money from?

Debt:

Debt can be defined as the amount of money that one party borrows from another and it makes this party liable to the latter. Firms, individuals as well as governments need funding to carry on the normal courses of business when revenues fall short of expenditures.

Answer and Explanation:

When all countries are in debt then the government can resort to many other sources, some of which are-

1) The government can borrow from intergovernmental holdings, the subsidiaries of the government and the institutions that exist within the government.

2) The government can also borrow money from the citizens of its country.


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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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