Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What is meant by the term Net lending/Borrowing and how is it calculated?
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The term net lending is defined as an economic measure which measures as to whether the government is providing financial aid to various other sectors of the economy. Net lending is important to ensure that the government has met all the obligations before deciding on any amount to make any investments or returning it to the tax payers. Hence net lending helps the government to measure the impact of finance on its economy.
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