The US Federal Government Is Unlikely to Default on Its Bonds

question 223

Multiple Choice

The U.S. federal government is unlikely to default on its bonds because

• A) the bonds are all long-term bonds and they are insured.
• B) the federal government has the ability to collect taxes and to sell securities to the Fed.
• C) foreigners are willing to buy the federal government bonds and lend to the U.S. government.
• D) the federal government can always borrow from the states and from businesses.

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Definitions:

Zona Glomerulosa

The outermost layer of the adrenal cortex that secretes mineralocorticoids, such as aldosterone, which regulate electrolyte and water balance.

Adrenal Gland

A pair of endocrine glands located above the kidneys that produce a variety of hormones including adrenaline and cortisol.

Reticular Fibers

Fine, threadlike fibers made of collagen type III, supporting the soft tissue of organs.

Customer Experience

The overall perception and satisfaction of a customer based on interactions with a company’s products, services, and brand throughout the customer lifecycle.