Question 2: What is public debt? What is its basic function? * * * issuing bonds means that * * * wants people to borrow money. For example, the central government or local governments will issue bonds for infrastructure construction or real estate development, or urban renewal. Of course, another reason is that * * * uses the open market operation of national debt to realize the landing of monetary policy!
Question 3: What are the characteristics and uses of public bonds?
As a kind of bond system, national debt shows four characteristics compared with other bonds:
1. High security. Among all kinds of bonds, the credit rating of public debt is usually considered to be the highest.
2. Strong liquidity. The secondary market of national debt is very developed and the transfer is very convenient.
3. Stable income. The interest payment of public bonds is guaranteed by * * *, and the income from investing in public bonds is relatively stable for investors.
4. Duty-free treatment. Most countries stipulate that income from purchasing government bonds can enjoy tax exemption.
use
* * * The specific way to obtain financial income according to the principle of recognition is a special financial activity. At the same time, most countries stipulate in their laws that they have the right to borrow money from individuals, enterprises, social organizations, financial institutions and other countries as debtors when necessary. The income in the form of loan is the debt income of * * * *, and it is also the debt of * * * *, and * * must pay interest and repay the principal to the creditor in the agreed way when borrowing money. Therefore, in the whole bond activity, * * * has formed a stable creditor-debtor relationship with bondholders. Generally speaking, this relationship is a voluntary transaction relationship between the two parties, which is completely different from the compulsory free collection of taxpayers unilaterally reflected in taxation.
Question 4: What is the function of issuing national debt? National debt is a credit behavior that takes the national finance as the debtor and takes the national finance as the premise to raise funds from the society by borrowing or issuing securities. Some people think that the national debt has the following functions: (1) to make up the fiscal deficit. The issuance of national debt is a voluntary, paid and flexible way. The issuance of national debt only involves the transfer of the right to use funds, which is a temporary distribution of social funds and national income. The total amount of money in circulation has not changed. Under normal circumstances, it will not increase the total demand and lead to inflation, which is conducive to the balance between supply and demand. It is a common practice in all countries to make up the fiscal deficit with the funds raised by issuing government bonds. (2) Raise construction funds. The main purpose of national debt is to raise construction funds and expand the scale of construction. By issuing treasury bonds, the state can effectively concentrate huge construction funds and speed up economic development. (3) Regulating macroeconomic operation. By issuing treasury bonds, the state can flexibly and effectively implement macroeconomic policies in different periods and promote the sustained, stable and healthy development of the national economy. (4) Open market operation. Open market business refers to the activities of the central bank to adjust the credit scale, money supply and interest rate by buying and selling securities in the open market, investing in the financial system or withdrawing reserves from the financial system, so as to realize its financial regulation and control. As one of the three monetary policy tools of the central bank, with the development of market economy, the main function of national debt is to provide an ideal tool for the central bank's open market operation, and the macro-control role of national debt in modern market economy is indirectly played through open market operation. Some people think that national debt is the best connection point between fiscal policy and monetary policy. In recent years, the short-term pulling effect of China's active fiscal policy is obvious, but the fiscal policy itself will not change the scale of money supply in society. Therefore, from the basic point of view that money supply determines aggregate demand, the long-term pulling effect of fiscal policy on aggregate demand is limited. Therefore, the Bank of China should strengthen the open market operation and keep the scale of money supply at a moderate level, which will fundamentally have a long-term impact on the total demand. As the best connection between fiscal policy and monetary policy, on the one hand, increasing the issuance of national debt is the main means of expansionary fiscal policy and the direct way for the country to make up the fiscal deficit and raise construction funds; On the other hand, with the rapid increase of the balance of national debt, the diversification of the term and variety of national debt and the increase of the proportion of book-entry national debt in the balance of national debt, it has created conditions for the central bank to increase its open market operation. Therefore, in the process of continuing to implement the proactive fiscal policy in the future, it will kill two birds with one stone if we can control the scale and rhythm of the issuance of national debt, design the variety and duration of national debt, and strengthen the open market operation. Some people think that huge national debt is beneficial to economic development. Debt construction is conducive to the advanced development of the economy, not the recession of the economy. The scale of debt is not terrible. As long as the borrowed money is spent on production and construction to truly promote rapid economic development, debt will not become a heavy burden.
Question 5: What is national debt? What is its function and significance? National debt, also known as public debt, is a debt borrowed by * *. Specifically, it refers to the national debt formed by issuing bonds at home and abroad or borrowing from foreign countries and banks. It is an important part of the whole social debt. National debt is a special financial category. [It is first and foremost a kind of financial income. In fact, the state issues bonds or loans to raise funds, which has three functions: making up the fiscal deficit, raising construction funds and regulating the economy. The issuance of national debt should follow the credit principle of borrowing and returning. When a bond or loan matures, it is necessary not only to repay the principal, but also to pay certain interest. The national debt is subscribed voluntarily. Except for a few compulsory national debt, whether to subscribe and how much to subscribe is entirely up to people. According to different standards, national debt can be divided into different types: according to the form of state borrowing, national debt can be divided into state borrowing and bond issuance. National debt can be divided into long-term national debt, short-term national debt and medium-term national debt. The so-called long-term and short-term are comparative, and there is no absolute standard. Most countries in the world generally call short-term treasury bonds with a maturity of less than one year, long-term treasury bonds with a maturity of more than 10 years, and medium-term treasury bonds with a maturity between the two as short-term treasury bonds. According to the nature of financing and issuance, national debt can be divided into compulsory national debt and unpaid national debt. National debt can be divided into domestic debt and foreign debt according to the region where it is raised and issued. The so-called domestic debt refers to the loans and bonds issued by the state at home. The so-called foreign debt refers to the country's borrowing from other countries, banks and international financial organizations. According to the liquidity of bonds, national debt can be divided into marketable national debt and unsold national debt. State loans are non-transferable, only bonds can be sold or not.
Question 6: What is the function of local debt? As an important part of market economy and modern fiscal decentralization system, local bonds play a vital role in the development of local economy and even a country's economy under modern economic conditions.
(1) make up the local fiscal deficit
When the recurrent fiscal revenue cannot meet the needs of fiscal expenditure, the common method to make up the gap between fiscal revenue and expenditure is to issue bonds. According to the scale of fiscal deficit, combined with the affordability of debt subjects, it is one of the main purposes and functions of local * * * bonds to choose the appropriate bond issuance scale to meet the capital demand of fiscal expenditure.
(2) Promote investment growth and raise construction funds.
The development of social economy is inseparable from the reasonable growth of investment. The purpose of bond financing is generally stipulated in local laws and regulations and shall not be abused. Local * * * bonds, facing the society, are mainly aimed at providing more software and hardware support for local economic development and promoting social equity. Raising funds by issuing local bonds can not only alleviate the pressure of local fiscal expenditure, but also make fiscal expenditure reasonably shared among more beneficiaries.
(3) Optimize the allocation of local resources and adjust local economic development.
Local * * * will mainly use bond income to provide local public goods, which makes resources allocated between the public sector and the private sector. Local public welfare undertakings will receive more care, and funds will not only flow to competitive industries.
Question 7: What are the advantages of buying government bonds? National debt is the wealth management product of ordinary people. Compared with stocks and funds, it has low risk and stable income, and there is no interest tax on bank deposits.
You only need to bring your ID card and money to buy government bonds. The lowest selling price is 1000 yuan, which is more than an integer multiple of 1000 yuan. There are two types of government bonds: voucher bonds and book-entry bonds:
Voucher bonds (including electronic savings bonds) must be purchased in the bank during the bond issuance period. Generally, there are few shares and many bank outlets, and voucher bonds are not easy to buy. If you want to buy such bonds, you should always pay attention to news broadcasts and newspaper announcements, such as Sina Netease's financial version of the national debt channel. Voucher bonds need to be held until maturity to receive coupon rate, and the interest rate for early redemption is low.
There are also two kinds of book-entry treasury bonds. One is book-entry treasury bonds listed and traded in the secondary market. You have to open an account in a securities company and buy and sell it at any time during the trading day, just like buying and selling stocks, so book-entry treasury bonds can earn the difference like stocks. The other is the bank counter transaction of book-entry treasury bonds. You only need to open treasury bond trading accounts in banks such as ICBC, Agricultural Bank of China and Bank of China, and you can also buy and sell at any time. You can also hold them all the time to get stable coupon interest at maturity.
Question 8: The function of buying bonds is 1. Buying bonds is equivalent to turning the "dead money" of these institutions into living money. Bonds held by banks and other financial institutions cannot be used for loans and other operations. Under the current financial crisis, funds are tight, credit is tight, banks have no money to lend, and they cannot support enterprises and individuals to lend. Therefore, it is necessary to revitalize the bank's stock assets and let the money flow again.
2. Both. For example, the recently issued RMB 800 billion includes both Geng bonds held by banks and bonds issued by banks. American financial products are more complicated, unlike ours, so we must buy them and have the same function, so that dead money can be turned into living money.
Supplement:
Asset securitization means that banks package loans into bonds and issue them. If they can't send it, it's in their own hands. Loans are dead money and cannot be converted into cash for loans.
Question 9: What is the significance and function of China's bond market opening to the outside world? For the first time, the China bond market allowed two foreign-funded institutions (International Finance Corporation and Asian Development Bank) to issue RMB bonds in China.
In addition to promoting China's economic and financial development, the People's Bank of China should also deepen the development of the bond market, and absorb the international advanced financial operation experience in this process, such as financial infrastructure such as institutional norms, payment and settlement, and supervision system, so as to promote the healthy and orderly development of China's bond market.
Its functions are as follows:
First, it is conducive to promoting the development of China's bond market.
Introduce foreign advanced technology, innovate financial instruments and cultivate specialized talents, and improve the present situation of small proportion of direct financing and unreasonable financing structure in China.
Second, it is conducive to promoting the opening up of China's bond market.
In the inter-bank bond market, foreign-funded commercial banks with RMB business qualifications can join bond underwriting groups to participate in bond issuance and underwriting, and can also buy and sell bonds through the access filing system; The inter-bank bond market introduced the first overseas institutional investor-Pan Asia Bond Index Fund. Now allowing international development agencies to issue bonds in China is another important step in the domestic bond market.
Third, it is conducive to reducing the exchange rate risk of domestic loan enterprises and improving the efficiency of capital use.
Overseas funds raised by domestic enterprises are foreign currency bonds issued overseas. Due to frequent exchange rate fluctuations in the international financial market, it not only affects the actual amount of foreign exchange used by domestic loan enterprises, but also bears certain exchange rate risks when purchasing foreign exchange to repay loans. After the bond market is opened, domestic enterprises will get RMB loan funds, thus reducing the risk of capital exchange of domestic enterprises and improving the efficiency of capital use.