Which of the Following Is Not a Reason Why the U.S

question 10

Multiple Choice

Which of the following is not a reason why the U.S. continues to be a large debtor nation?

• A) The U.S. is the largest market in the world in which to invest.
• B) The U.S. is a safe place to invest.
• C) Creditors believe the U.S. is capable of servicing this debt.
• D) The U.S. has the highest ratio of indebtedness to GDP in the world.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired and held in the company's treasury.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically does not have voting rights but has a fixed dividend.

Common Stock

A type of equity security that represents ownership shares in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation.

Treasury Stock

Shares that were once part of the outstanding shares and were bought back by the company.