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Unformatted text preview: though we dont put it into savings accounts (cash accounts) because it doesnt help you in long term (doesnt keep up with inflation). Bond rate when you invest in bond you look at this so you dont put money into shaky bond. Companies rate cities and counties on their credit worthiness, how strong they are financially. o S & P and Moodys look at how much city spending, how much they bring in taxes, how much they borrowed in past, what total assets areetc. If outside good standard then lower rating. They give AAA, AA, A, B ratings and the higher the rating the less interest rate. They give good interest rate on shakier bonds, so if really high rate of interest probably because no one wants to invest in those bonds because low rating. Cities want to get good rating so they can pay less when borrowing money. Mandated expenditures every city has them, items they have to pay for but dont control. Imports and exports...
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This note was uploaded on 09/28/2009 for the course POL 327 taught by Professor Withers during the Spring '08 term at SUNY Stony Brook.
- Spring '08