Page 15 - Introduction To Investment Management
P. 15
Source: Ministry of Finance Malaysia in Monetary and Financial Development.
It should be remembered that, the government cannot issue shares as common
practice to generate funds. Government are also not recommended to print a large
amount of money (even though they are basically able to do so) because this action could
lead to inflation and they usually refrain from doing so. Thus, the best that could be
adopted by the government for long-term funding is through the issuance of government
bonds (for example in Table 1 – Malaysian Government Securities). As for short-term
financing, the government may offer treasury bills to any interested party.
Table 2 shows the components of liabilities of USA Government by Board Governors of
The Federal Reserve System, Jun 2000.
LIABILITIES
% Total
$ Billion
Currency 25 0.6
Government securities 3653.6 81.8
(Treasury Bonds)
(Treasury Bills)
Insurance &Reserves Pension 708.2 15.9
Miscellaneous 76.8 1.7
Total 4463.6 100
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