U)S.government Bonds Have No Default Risk Because

question 33

Multiple Choice

U) S.government bonds have no default risk because

• A) they are backed by the full faith and credit of the federal government.
• B) the federal government can increase taxes to pay its obligations.
• C) they are backed with gold reserves.
• D) they can be exchanged for silver at any time.

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Definitions:

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.

Parties

in legal terms involve individuals, companies, or entities who are directly involved in a lawsuit or legal agreement.

Certify

To officially declare or verify that something is true, accurate, or meets a specific standard.

UCC

Stands for the Uniform Commercial Code, which is a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.