The total amount that the federal government has borrowed including internal debt (borrowed from national creditors) and external debt (borrowed from foreign creditors). National debt is comprised of: (1) Floating debt which is short term borrowings using treasury bills, ways-and-means advances, and money from the central bank. (2) Funded debt, short-term debt converted into long-term debt. (3) Unfunded debt, national savings certificates, savings bonds, premium bonds, and securities from the foreign exchange. National debt has an important role in a country’s finances as government securities are a critical part of the reserves of its financial institutions.