The Federal Government Can Always Avoid Default on Its Issues

question 75

Multiple Choice

The federal government can always avoid default on its issues because of its unique right to:

• A)change Treasury bond yields to zero at its discretion.
• B)print money.
• C)tax.
• D)wage war.

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Definitions:

Bank Statement

A document issued by a bank that summarizes an account holder's transactions and financial activity over a specified period.

Checking Account

A bank account that allows for numerous withdrawals and deposits, intended primarily for daily transactions.

Check Register

A record book used to track checks written, deposits made, and the current balance of a checking account.

Endorser

Signature on the back of the check of the payee.