According to financial tables, which entity owns about 1.3% of actively traded US debt?

Prepare for the Bloomberg Market Concepts Exam. Use flashcards and multiple-choice questions. Each question provides hints and explanations to boost your BMC exam readiness!

The correct answer is that Taiwan owns about 1.3% of actively traded US debt. This percentage reflects Taiwan's investment strategy and foreign reserves management, where it allocates a portion of its investments to US Treasury securities. The ownership of US debt by foreign entities is significant, as it indicates trust in the US economy and its financial stability, while also serving various purposes such as currency stabilization and as a means of secure investment.

Taiwan's substantial holding showcases its economic relationship with the United States, as many countries invest in US debt to diversify their portfolios and to benefit from the relatively safe returns associated with US Treasury bonds. This allows countries like Taiwan to manage their currency values while engaging in global trade.

The context of this data is important as it demonstrates how different countries view and interact with US securities, which can vary based on economic strategy, political relationships, and global market conditions.

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