The Two Largest Foreign Holders of U

question 40

Multiple Choice

The two largest foreign holders of U.S.Treasury securities are

• A) China and Mexico.
• B) China and Japan.
• C) Great Britain and China.
• D) Japan and Canada.
• E) Mexico and Canada.

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Definitions:

Miller-Orr Model

A financial model that helps in managing cash flows and cash reserves of firms, focusing on maintaining an optimal balance level.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period, reflecting the cost of borrowing or the gain on savings.

Target Cash Balance

The ideal amount of cash that a company aims to hold to meet operational and transaction needs while minimizing holding costs.

Miller-Orr Model

A model used in financial management to determine the optimal level for cash balances under uncertainty.