Which of the Following Statements Regarding Governments Is FALSE

Multiple Choice

Which of the following statements regarding governments is FALSE?

A) Governments are dependent on the profitable sales of goods and services to finance their operations.
B) Governments have the right to tax.
C) As long as they are fiscally responsible, governments have the opportunity to issue significant amounts of debt in the capital markets at preferential interest rates.
D) Governments and their agencies finance their operations by levying fees and incurring liabilities.