The Market for Government Securities Is the Anchor of the U.S

The market for government securities is the anchor of the U.S. financial system. The increasing ratio of government holdings of its own debt is therefore:

A) Viewed with approval since it decreases the net public debt
B) Viewed with approval since it tends to keep interest rates stable, thereby encouraging investment
C) Viewed with alarm since it tends to reduce the volume of trading in government securities
D) Viewed with alarm since it tends to hold interest rates on government securities below market rates
E) Of no concern to investors