In 2018, China held over $3 trillion in foreign reserves. Over 40 percent of China's reserves were in the form of U.S. Treasuries. This is an example of:
A)a crowding out effect.
B)internationalizing the U.S. debt.
C)policy conversion.
D)the real debt.

Question

Quizplus · Accepted Answer

Internationalizing the U.S. debt refers to the process where foreign countries hold significant amounts of a country's debt, in this case, U.S. Treasuries. China's substantial holding of U.S. debt is a prime example of this phenomenon.

In 2018, China Held Over $3 Trillion in Foreign Reserves