Answer:
1. The national debt includes Treasury bonds bought by
✓ the government of China.
✓ a citizen of Germany.
✓ First National Bank of Dallas.
✓ the Social Security Administration.
✓ a little old lady in Peoria.
2. The public debt includes Treasury bonds bought by
✓ First National Bank of Dallas.
✓ the government of China.
✓ a citizen of Germany.
✓ a little old lady in Peoria.
✗ the Social Security Administration.
3. Internally held debt includes bonds owned by
✗ the Social Security Administration.
✓ First National Bank of Dallas.
✗ the government of China.
✗ a citizen of Germany.
✓ a little old lady in Peoria.
4. Externally held debt includes bonds owned by
✗ the Social Security Administration.
✗ First National Bank of Dallas.
✓ the government of China.
✓ a citizen of Germany.
✗ a little old lady in Peoria.
Step-by-step explanation:
The national debt is everything the U.S. government owes, so all of these bonds are part of the national debt.
The public debt is everything the U.S. government owes to anyone besides a U.S. government agency. So, the bonds bought by the Social Security Administration are not part of the public debt, but everything else is. The public debt can be divided into the part owed to U.S. citizens and firms and the part owed to anyone outside the United States.
The internally held debt includes bonds bought by U.S. firms (the First National Bank of Dallas) and citizens (the little old lady in Peoria). The bonds bought by the Social Security Administration are not part of the internally held debt because they are not part of the public debt.
The externally held debt is the part owned by foreigners, whether firms, individuals (the citizen of Germany), or governments (the government of China).