Question

The largest borrowers are A Insurance companies and household B governments and businesses C governments and household D households and businesses?

1) A Insurance companies and household
2) governments and businesses
3) governments and household
4) households and businesses

Answer 1

2. Governments and businesses are the largest borrowers. They obtain funds from households, private firms, and foreign financial investors.

Step-by-step explanation:

The largest borrowers are 2. governments and businesses. When governments are borrowers in financial markets, they can obtain funds from several sources such as households saving more, private firms borrowing less, or from foreign financial investors.

In the United States, households, institutions, and domestic businesses save a significant amount of money, and some of these savings are loaned to government agencies or private companies.