Why Was the World So Concerned About Greece Defaulting on Its

question 145

Multiple Choice

Why was the world so concerned about Greece defaulting on its debt?

• A) People were afraid Greece would be sold to another country to pay its debts.
• B) The U.S.government held a large quantity of Greek debt,so there was a concern that a Greek default would cause a U.S.default.
• C) Countries in the European Union held a large quantity of Greek debt,so there was a concern that a Greek default would cause other European countries to default.
• D) There were concerns that Greece would devalue its currency,leading to a severe recession.
• E) Greece is one of the largest consumers in the world,so there were fears that a Greek default would lead to a collapse in world demand.

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Definitions:

October

The tenth month of the year in the Gregorian calendar, often associated with the autumn season in the Northern hemisphere and spring in the Southern hemisphere.

Government Policy

Decisions and actions taken by a government to achieve certain goals, which can relate to domestic or international issues, including economy, health, defense, and environment.

Petrograd

The name given to the city of Saint Petersburg, Russia, between 1914 and 1924, especially noted during the Russian Revolution.

Food Shortages

A situation in which the supply of food is insufficient to meet the demand, often resulting in hunger, malnutrition, and increased food prices.