Why Was the World So Concerned About Greece Defaulting on Its

question 145

Multiple Choice

Why was the world so concerned about Greece defaulting on its debt?

• A) People were afraid Greece would be sold to another country to pay its debts.
• B) The U.S.government held a large quantity of Greek debt,so there was a concern that a Greek default would cause a U.S.default.
• C) Countries in the European Union held a large quantity of Greek debt,so there was a concern that a Greek default would cause other European countries to default.
• D) There were concerns that Greece would devalue its currency,leading to a severe recession.
• E) Greece is one of the largest consumers in the world,so there were fears that a Greek default would lead to a collapse in world demand.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, commonly expressed as an annual percentage of the loan outstanding.

Missing Value

A term used in statistics and data analysis for a data point that is not recorded or is unknown.

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than a regular savings account, where withdrawing funds before the term ends may result in penalties.

Interest Rate

The percentage at which interest is charged or paid on borrowed or lent money over a specific period.