199k views
0 votes
The U.S. government borrows money by _____.

A. asking banks or foreign investors
B. printing money
C. issuing stocks
D. issuing Treasury bonds and other government-backed securities

2 Answers

4 votes
D. Issuing Treasury bonds and other goverment-backed securities.
-Hope this helps :)
User Nahom Tijnam
by
6.2k points
4 votes

Answer:

D. issuing Treasury bonds and other government-backed securities

Explanation:

Governments create debt by issuing government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.

Treasury bonds are how the US - and all governments for that matter - borrow hard cash: they issue government securities, which other countries and institutions buy. So, the US national debt is owned mostly in the US - but the $5.4tn foreign-owned debt is owned predominantly by Asian economies.

User AndersK
by
6.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.