Will a large quantity of bonds held in the Social Security Trust Fund make it easier to deal with the retirement of the baby boomers?
A) Yes; the federal government will be able to redeem these bonds in the future without raising taxes or increasing its borrowing.
B) Yes; the interest on these bonds will provide the federal government with a stream of net revenue in the future.
C) Yes, but only if the federal government holds these bonds until they mature.
D) No; the federal government cannot redeem the bonds without raising revenues for their redemption from other sources.

Question

Quizplus · Accepted Answer

The bonds in the Social Security Trust Fund are essentially IOUs from the federal government, meaning that to redeem them, the government must raise funds through taxes or borrowing.

Will a Large Quantity of Bonds Held in the Social