ZuoTi.Pro
Question



Question 46 (1 point) Is the U.S. likely to default on its debt? Explain why. The U.S. is unlikely to default on its debt bec
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Correct option D: US is unlikely to default on its debt because it is partially held by foreign investors.

The US states are unlikely to defaulting because the dates are partially existing on the debt ceiling and the US bond. The US bonds are very appealing to the foreign investors and the treasury keeps issuing bonds to the foreign investors to control the debt. But in case of keeping the bonds more appealing to investors the yeild should be increased.

Please don't forget to rate the answer if its helpful, thank you.

0 0
Add a comment
Know the answer?
Add Answer to:
Question 46 (1 point) Is the U.S. likely to default on its debt? Explain why. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1-explain the link between well-performing financial markets and economic growth. name one channel through which financial...

    1-explain the link between well-performing financial markets and economic growth. name one channel through which financial markets might effect economic growth and poverty ? 2-Explain the main difference between a bond and a common stock? 3-when interest rates decrease, how might businesses and consumers change their economic behavior? 4-How does the current size of the u.s budget deficit compare to the historical budget deficit or surplus for the time period since 1950? 5-when the dollar is worth more in relation...

  • 23. (1 pt) In 2015 the public debt was $18.2 trillion. Put this number in perspective...

    23. (1 pt) In 2015 the public debt was $18.2 trillion. Put this number in perspective by relating the debt to GDP, to other countries' debt, to the amount of interest payments on the debt, and to ownership of the debt. In 2015 debt was about dramatically starting in 2008 because of massive annual budget deficits percent of GDP and the percentage (rose, fell) 24. (1pt.) Can the large public debt cause the nation to go bankrupt? Explain. The large...

  • 1. During a recession, what is likely to happen to the risk premium? a. the risk...

    1. During a recession, what is likely to happen to the risk premium? a. the risk premium will be higher because there are fewer investment opportunities b. the risk premium will be lower because there are fewer investment opportunities c. the risk premium will be unchanged because the overall level of risk has not changed d. the risk premium will be higher because the risk of default is greater 2. The risk-free rate is: a. usually approximated by interest rates...

  • Why do entities borrow in the form of debt obligations? Economies around the world were still...

    Why do entities borrow in the form of debt obligations? Economies around the world were still recovering during 2012 after the 2008-2009 recession. Governments and central banks continued their efforts to facilitate economic recovery. The U.S. Federal Reserve Bank (the Fed) kept interest rates at record lows. This, along with several other reasons, found the bond markets flooded with new bond issues. The following article highlights some reasons why firms issued debt obligations to raise funds. In the context of...

  • One of the most important asset classes for investors are fixed-income securities that consist of debt...

    One of the most important asset classes for investors are fixed-income securities that consist of debt obligations, or bonds, and preferred stock. In simple terms, a fixed-income security is a financial obligation in which the borrower agrees to pay specified sum of money at specified dates. This transaction involves different groups that comprise the bond markets: issuers, underwriters, and purchasers. A :    B :    The entity issuing the debt obligation is the borrower in the transaction. Some of...

  • Can anyone answer the question and explain it thx alot 15. Suppose the U.S. government imposes...

    Can anyone answer the question and explain it thx alot 15. Suppose the U.S. government imposes added taxes on interest paid on American bank deposits. What is the likely effect of this regulation? a) raise Eurodollar interest rates b) reduce Eurodollar interest rates c) have no effect d) capital flight 16. Which of the following foreign equity securities are sold by foreign companies to U.S. investors? a) Yankee stock issues b) Shogun stock issues c) Samurai stock issues d) Global...

  • 1) Present value calculations: A) are appropriate for investments in the same time period B) are...

    1) Present value calculations: A) are appropriate for investments in the same time period B) are accurate only in a low-rate environment C) provide comparisons for investments when inflation is known D) provide a common reference for measuring investments at different maturities 2) Compounding refers to: A) the calculation of interest rates after allowing for the effect of taxes B) the process of earning interest on interest of an investment C) the repayment of both interest and principal at the...

  • Prior to the Financial Crisis, rating agencies mistakenly rated Mortgage Backed Securities (MBS) too high because:...

    Prior to the Financial Crisis, rating agencies mistakenly rated Mortgage Backed Securities (MBS) too high because: Historically, mortgages have very low default rates. The payments on the MBS’s were “insured” by credit default swaps. The agencies didn’t account for the increase in sub-prime mortgages. All of the above. Why should credit analysts be concerned if a company’s stock trades below book value? It means the company is probably going bankrupt It means the company will probably incur lots of debt...

  • 1)The TARP program allocated $500 million to individuals who defaulted on their mortgages. provided $25 billion...

    1)The TARP program allocated $500 million to individuals who defaulted on their mortgages. provided $25 billion of debt relief to citizens who owed federal taxes. provided low-interest-rate loans for students attending college. provided low-interest-rate loans for new homeowners. allocated $700 billion to keep banks from failing. Question 12 The interest rate of a bond is computed as a(n) difference. sum. absolute value. multiplication. growth rate Question 13 If the interest rate of a one-year bond is 15 percent and its...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT