Which statement about the relationship between gross debt and existing debt is true?

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Understanding how gross debt differs from existing debt is the key. Gross debt represents the total liabilities the entity is obligated to repay, including any borrowings that have been authorized but not yet drawn down, while existing debt is only the portion that has actually been borrowed and is outstanding. Because gross debt includes those extra, unissued borrowings, it is larger than the amount of debt that already exists. Therefore the statement that gross debt is always greater than existing debt is correct. Note that if there were no unissued borrowings, gross debt and existing debt would be the same, but typically gross debt covers a broader set of obligations.