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:

Inappropriate Emotional Responses

Emotional reactions that are considered unsuitable or out of context for the situation, often indicative of psychological disorders or emotional dysregulation.

Acts Aggressively

Engaging in behaviors intended to harm or intimidate others.

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Axis I Disorders

Refers to clinical conditions that can be the primary focus of clinical attention, including depression, anxiety disorders, and schizophrenia, among others.