If one subtracts the amount of bonds held by agencies of the federal government and the Federal Reserve from the national debt, what remains is known as the
A) external debt.
B) privately held government debt.
C) trade deficit.
D) budget deficit.

Question

Quizplus · Accepted Answer

The amount of bonds held by agencies of the federal government and the Federal Reserve are not considered privately held, as they are held by the government itself. Therefore, subtracting these bonds from the national debt leaves only the privately held government debt. This includes debt held by individuals, corporations, and foreign governments.

If One Subtracts the Amount of Bonds Held by Agencies