China's Holdings of U.S. Treasuries Declines

The video discusses the impact of inflation numbers from the Federal Reserve on yields, highlighting the pressure on US Treasury holdings by major creditors like China and Japan. China's treasury holdings fell significantly in 2016, affecting US borrowing costs. Japan, while still the largest US creditor, also saw a decline in its holdings. The video explores the domestic and international factors influencing these changes.

What economic factors are causing major creditors to reconsider their US Treasury holdings?

• Increased foreign investments

• Stable economic growth

• Decreasing interest rates

• Rising deficits and inflation in the US

By how much did China's US Treasury holdings decrease in 2016?

• $300 billion

• $50 billion

• $188 billion

• $100 billion

What was the impact of China's sale of US Treasurys on US borrowing costs?

• Borrowing costs decreased

• Borrowing costs remained the same

• Borrowing costs increased

• Borrowing costs were unaffected

What is Japan's status in terms of US Treasury holdings?

• Not a creditor

• Third largest creditor

• Largest creditor

• Second largest creditor

How much did Japan's Treasury holdings decrease year over year in 2016?

• $100 billion

• $31.6 billion

• $10 billion

• $50 billion