China Buys US bonds, Money, Banking and Central Banks, Finance and Capital Markets

Go further into depth with the China-United States trade scenario, this time investigating what the Chinese government does with the dollars they collect. Sal reminds scholars why the Chinese Central Bank prints Yuan to purchase dollars and explains how to lend it to the US through treasury bonds. He also briefly goes over the difference between treasury bonds and bills. Learners see how this increased demand for treasury assets affects the US economy, particularly interest rates.