Answered

How does the US government borrow money?

A. It raises taxes on individuals, households, and businesses to generate additional funds.
B. It has the Treasury Department print new paper bills that it can spend during the fiscal year.
C. It has the Treasury Department print and auction off new bonds to the general public.
D. The US President calls Elon Musk to ask for a few billion dollars.



Answer :

GinnyAnswer

Final answer:

The U.S. government borrows money by selling Treasury securities to investors who are promised repayment with interest.


Explanation:

The U.S. government borrows money by selling securities called Treasury bonds, notes, and bills. These bonds are purchased by investors who are promised repayment with interest in the future. The government uses this borrowing method to cover budget deficits and fund various projects.


Learn more about U.S. government borrowing methods here:

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