What Does It Mean If a Country Is "Energy Independent

question 62

Multiple Choice

What does it mean if a country is "energy independent"?

• A)A country can pay to have all of its energy imported from other countries without having to borrow money.
• B)A country uses a hybrid plan of energy production and energy imports to provide a stable supply of electricity for its citizens.
• C)A country has access to enough reliable and affordable energy resources to meet its needs.
• D)A country can meet of all of its energy needs without importing any fuel.

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Definitions:

Levered Firm

A company that utilizes debt financing as a significant portion of its capital structure.

Indirect Bankruptcy Costs

Expenses related to bankruptcy that are not direct costs such as legal and administrative fees, including damage to corporate reputation and loss of business opportunities.

Corporate Default

A failure of a company to fulfill its financial obligations, such as missing a debt payment.