A Key Difference Between Sovereign Default and Corporate Bonds Is

question 69

Multiple Choice

A key difference between sovereign default and corporate bonds is:

• A)unlike a corporation,a country facing difficulty meeting its financial obligations is can not default.
• B)unlike corporate debt,sovereign debt prices are not inverse to yields.
• C)unlike a corporation,any country can turn to the EMU to pay off its debts.
• D)unlike a corporation,a country facing difficulty meeting its financial obligations typically has the option to print more currency.

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Definitions:

Cheat

Engaging in dishonest or deceitful behavior to gain an unfair advantage in a competitive situation or to bypass established rules.

Ethical Development

The process of establishing and applying moral standards and principles within individuals, organizations, or societies.

Preconventional

A stage in Kohlberg's theory of moral development where an individual's moral reasoning is based primarily on consequences of actions and external rewards or punishments.

Own Interests

Personal advantages or benefits that drive individual actions, choices, or motivations.