Which of the following is a key element included in a GFOA debt policy?

A key element included in a GFOA debt policy is the types of debt issued. This aspect is crucial because a well-defined debt policy outlines the specific types of financing instruments that a government will use for borrowing purposes, such as general obligation bonds, revenue bonds, or notes. By specifying the types of debt, the GFOA encourages governments to create a structured approach to debt management, which helps to promote fiscal responsibility and transparency.

Incorporating this information into a debt policy enables a government to set limits on the types of debt that can be issued, ensuring that any borrowing aligns with the overall financial strategy and priorities of the entity. It also provides clear guidance for decision-makers regarding the appropriateness and implications of different debt instruments based on the jurisdiction's creditworthiness, financial goals, and capital needs.

Other aspects, such as the political climate, market fluctuations, and investment opportunities, while they may be relevant to overall financial planning and investment strategy, are not key components of a debt policy per GFOA guidelines. They primarily serve as contextual factors that may influence broader economic decisions but do not define the framework for debt issuance itself.