A Number of Governments in Europe from 2009 Onward,including Ireland,faced

question 71

Multiple Choice

A number of governments in Europe from 2009 onward,including Ireland,faced loan defaults as they could not repay the interest on their loans and required assistance from the European Union and the International Monetary Fund.Which of the following is true of the situation facing Ireland at that time?

• A) The Irish government took on huge debts to bail out failing banks.
• B) The Irish government had previously increased public sector wages and lowered tax rates.
• C) By 2010, the budget deficit was over 30 per cent of Ireland's GDP.
• D) All of these options are correct.

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Definitions:

Long-Term Investments

Investments in stocks, bonds, or other financial instruments that a company intends to hold for a period longer than one year.

Bond Investment

Purchasing debt securities issued by corporations or governments to finance their operations, typically yielding interest income.

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to reflect its current market value.

Long-Term Investment

assets purchased by a company that are intended to be held for more than one year, such as stocks, bonds, or real estate.