It Is Important to Distinguish Between the Privately Held Portion

question 68

Multiple Choice

It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve system because

• A) the government will not have to repay the privately held debt.
• B) only the privately held debt creates a net interest liability for the federal government.
• C) the privately held debt does not create a net interest liability for the federal government.
• D) taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.

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Definitions:

Absorption

The process by which substances are taken up into the bloodstream, particularly in the context of nutrients from the digestive system.

Herpes Simplex I

A type of the herpes simplex virus causing oral herpes, typically characterized by cold sores or fever blisters around the mouth.

Oral

Pertaining to the mouth; often used to describe medications taken by mouth.

Nasal

Pertaining to the nose.