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:

Political Party Organization

The structure and systems set up by a political party to pursue its objectives, including electioneering, policy development, and membership engagement.

Plurality System

An electoral system in which the candidate with the most votes in a single constituency wins, without needing a majority of the votes.

New Party Formation

The process by which a new political party is created, often in response to perceived inadequacies in existing parties or to represent specific ideologies or interests.

Winner-Take-All

A system in which the candidate who receives the most votes in an election wins everything, receiving all of a state's electoral votes or all seats up for election, with no prizes for second place.