TeachMeFinance.com - explain means of financing
means of financing -- Means by which a budget deficit is financed or a surplus is used.
Means of financing are not included in the budget totals. The primary means of financing is borrowing
from the public. In general, the cumulative amount borrowed from the public (debt held by the public)
will increase if there is a deficit and decrease if there is a surplus, although other factors can
affect the amount that the government
must borrow. Those factors, known as other means of financing, include
reductions (or increases) in the government's cash balances, seigniorage,
changes in outstanding checks, changes in accrued interest costs included
in the budget but not yet paid, and cash flows reflected in credit financing
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.