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.