What would happen if the U.S. actually paid off the national debt? Where would the banks, big financial institutions, and government foreign and domestic put their cash? | Homework.Study.com (2024)

Question:

What would happen if the U.S. actually paid off the national debt? Where would the banks, big financial institutions, and government foreign and domestic put their cash?

National Debt:

This refers to the amount of money that a county owes. To facilitate development in a country, the government needs a massive amount of funds which could be not be guaranteed by the revenues collected. In some other instances, a country experiences a recession or a depression and this forces the government to apply for loans to salvage the economy. These loans amount to what is referred to as national debt.

Answer and Explanation:1