Final answer:
The legislature is the government body that must approve bond issues, such as in the United States where Congress approves bond issuance. This ensures transparency, accountability, and democratic decision-making in the government's borrowing and spending activities.
Step-by-step explanation:
The government body that must approve bond issues is the legislature. The legislature is responsible for making and passing laws, including those related to bond issuance. In most democratic countries, such as the United States, the legislature is responsible for the budget and fiscal policy decisions.
For example, in the United States, bond issues must be approved by the Congress, which is the legislative body. Congress determines the maximum debt the U.S. government can maintain through bonds, called the "Debt Ceiling." The approval process involves debates and negotiations among the lawmakers to ensure the bond issuance aligns with the government's financial goals and priorities.
It is important for bond issues to be approved by the legislature because it ensures transparency, accountability, and democratic decision-making in the government's borrowing and spending activities. The legislature represents the interests of the citizens and has the authority to set limits on government debt and financial commitments.