Financial securities which are issued to finance government expenditures and national debt are classified as
A
treasury notes and bonds
B
contraction bonds
C
expansion bonds
D
dollar bonds
Correct Answer: treasury notes and bonds
Financial securities which are issued to finance government expenditures and national debt are classified as treasury notes and bonds. Treasury bills, notes, and bonds are fixed-income securities issued by the U.S. government. They are sold at auction and on the secondary market.