Question

12) Which of the following is the largest borrower in the money markets? A) commercial banks B) large corporations C) the U.S. Treasury D) U.S. firms engaged in foreign trade

Answer 1

Answer: C

The largest borrower in the money markets is C) the U.S. Treasury.
The U.S. Treasury borrows money by issuing Treasury bills, notes, and bonds to finance the government's budget deficit and other expenditures. These securities are considered safe investments and are highly sought after by individuals, institutional investors, and foreign governments.