The US Treasury Both Pays and Receives Almost All of the the Interest

question 125

Multiple Choice

The U.S. Treasury both pays and receives almost all of the interest on that portion of the national debt that is held by

• A) domestic investors.
• B) foreign investors.
• C) government agencies and the Federal Reserve system.
• D) commercial banks.

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Definitions:

IRA

An Individual Retirement Account, a savings plan that allows individuals to set aside money for retirement while offering tax advantages.

Tax Laws

Regulations and legal standards governing the collection of taxes by the government from individuals and organizations.

Preferential Treatment

The act of giving advantageous conditions or benefits to certain groups or individuals over others, often based on criteria outside of merit.

Retirement Saving

Financial savings accumulated over an individual’s working life to provide income in retirement.