Which of the Following Is Not a Potential Cost Faced

question 10

Multiple Choice

Which of the following is not a potential cost faced by a defaulting sovereign nation

• A) Loss of reputation in international capital markets
• B) Inability to borrow in international capital markets for some time
• C) Losses to domestic holders of your debt
• D) Losses to foreign holder of your debt
• E) Inability of private sector borrowers to access credit internationally

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Definitions:

Crowdfunding Efforts

Initiatives taken to raise funds for a project or venture by soliciting small contributions from a large number of people, typically via the internet.

Bootstrapping

A self-funding approach wherein an entrepreneur starts a company with personal finances or the revenue generated by the business, rather than external investment.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise in the hope of making a profit.

Angel Investors

Wealthy individuals who provide capital for start-ups or small businesses in exchange for ownership equity or convertible debt.