A. Americans owe to foreigners.
B. state and local governments owe to the federal government.
C. the federal government owes to holders of U.S. securities.
D. the federal government owes to taxpayers.
Yes, you are correct. The public debt refers to the amount of money that the federal government owes to holders of U.S. securities. U.S. securities include Treasury bonds, bills, and notes, which are essentially loans made by individuals, institutions, and foreign governments to the U.S. government. The government issues these securities to finance its borrowing needs and to fund various government programs. Therefore, option C is the correct answer.
