A Key Difference Between Sovereign Default and Corporate Default Is

question 85

Multiple Choice

A key difference between sovereign default and corporate default is:

• A)unlike a corporation,a country facing difficulty meeting its financial obligations cannot default.
• B)unlike corporate debt,sovereign debt prices are not inverse to yields.
• C)unlike a corporation,any country can turn to the EMU to pay off its debts.
• D)unlike a corporation,a country facing difficulty meeting its financial obligations typically has the option to print more currency.

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Definitions:

Paradigm Shift

A fundamental change in approach or underlying assumptions in a scientific discipline or other field of study.

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy, fulfilling life conditions.

Objectively Measure

The process of quantifying or evaluating an attribute or phenomenon in a way that is not influenced by personal feelings, interpretations, or prejudice.

Parsing Psychology

The process of analyzing and interpreting the mental and emotional components of human behavior typically in terms of language or cognition.