ATo fund public expenditure and manage the national debt
BTo offer direct insurance protection to retail savers
CTo oversee the conduct of investment advisers
DTo manage corporate accounting requirements
ETo set official monetary policy
✓ Correct answer: A. To fund public expenditure and manage the national debtThe DMO sells government bonds (gilts) to raise funds for public spending and to refinance debt obligations as they fall due, underpinning fiscal policy delivery.
Why the other options are incorrect:
• To offer direct insurance protection to retail savers: Insurance protection for depositors is the role of the FSCS, not the DMO.
• To oversee the conduct of investment advisers: Supervision of investment adviser conduct is carried out by the FCA, not the DMO.
• To manage corporate accounting requirements: Accounting standards are managed by the FRC, not the DMO.
• To set official monetary policy: Monetary policy is set by the Bank of England, not the DMO.
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Theory