The debt ceiling is the maximum amount of money that the federal government is allowed to borrow. When the federal government approaches the ceiling, Congress must raise it in order to authorize additional borrowing and the issuance of new debt by the Treasury.
The debt limit refers to the maximum amount of debt that a municipality or other applicable entity can incur. It is a critical financial constraint that ensures entities do not exceed prudent borrowing levels.
Floating debt refers to short-term financial obligations that are continuously refinanced. It is commonly seen in both business and government sectors and includes instruments such as commercial paper and Treasury bills.
Government obligations refer to debts that a government owes to creditors, typically in the form of bonds. These obligations are crucial for funding government operations and projects.
Gross federal debt refers to the total amount of debt that the federal government has accrued over time, encompassing both public and private holdings.
Public debt, also known as government debt or sovereign debt, refers to the borrowings by governments to finance expenditures not covered by current tax revenues. It is accumulated by the government through the issuance of securities such as bonds and is an essential part of fiscal policy and economic management.
Underlying debt refers to outstanding financial obligations secured by collateral, typically used in real estate and securities contexts, involving senior debt or debt of municipal government entities with broader credit responsibility.
