Sovereign Debt Ratings

question 38

Multiple Choice

Sovereign debt ratings:

• A) Measure the total amount of debt in a country
• B) Represent the chance that a country will default on governmental debt
• C) Measure a company's total asset-to-debt ratio
• D) Measure the GDP of a company in relation to its trade deficit
• E) Represent the value of a nation's total debt

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Definitions:

Bet

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Super Bowl

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Risk-loving

A characteristic of individuals who prefer outcomes with uncertain prospects over those with certain but possibly lower outcomes, often willing to take more risk for the chance of higher rewards.

Disability Insurance

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