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.

Question

Quizplus · Accepted Answer

The U.S. Treasury pays interest on the national debt held by government agencies and the Federal Reserve, but since these are part of the government, the interest payments are essentially transferred within the government, meaning the Treasury both pays and receives this interest.

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