Which statement about a Federal Government lease is true?

• A. Can borrow money based on congressional laws
• B. Typically does not obligate long term
• C. May use long term bonds to fund
• D. Different agencies use different methods

Answer: (B)

Federal government leases are usually tied to annual appropriations, so they don’t create a binding long‑term debt on the books. Each year, Congress decides the funding, which means a lease obligation can be funded, funded with a new appropriation, or not funded in the next year. Because long-term debt for the government is typically generated through issuing bonds or other long-term financing, a standard lease doesn’t automatically convert into a permanent, long‑term financial obligation. That’s why the statement that a federal government lease typically does not obligate long term is the best fit.