Increases in the Fraction of National Debt Held by Foreigners

question 82

Multiple Choice

Increases in the fraction of national debt held by foreigners __________ the burden of debt service on future generations __________.

• A)decrease; because it is easier for the borrowing nation to default on the debt
• B)decrease; but may make the country more vulnerable to foreign intervention
• C)decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically
• D)increase; because taxes to pay the debt are collected within the country but more interest payments on the debt are sent outside
• E)increase; because foreign bondholding pushes up interest rates at date of issue,increasing crowding out

Grasp the implications of contingent liabilities and the recording of potential legal settlements.

Acquire insights into the composition of employee costs beyond gross wages.

Understand the ethics and implications of maintaining secret systems for vendor verification in businesses.

Identify and describe various types of liabilities and the conditions under which they are recorded.

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Definitions:

Voluntarily Assumed

Taking on responsibilities or obligations by choice rather than because of a legal requirement.

Defect Exists

A statement indicating that a flaw or fault in a product or service has been identified.

Negligence-Based

Pertaining to a cause of action that arises from the failure to exercise a standard of care, resulting in harm to another.

Product Liability Actions

Legal actions taken against manufacturers or sellers for producing or distributing a faulty product that caused harm to the consumer.