The net value to the federal government of the bonds currently held in the Social Security Trust Fund is
A) approximately $1 trillion.
B) now approaching $2 trillion.
C) greater than $2.5 trillion.
D) zero, because the federal government is both the payee and recipient of the interest and principal represented by these bonds.

Question

Quizplus · Accepted Answer

The bonds in the Social Security Trust Fund represent internal government debt, meaning the government owes this money to itself. Therefore, the net value to the federal government is zero, as it does not affect the overall financial position of the government.

The Net Value to the Federal Government of the Bonds