Answered

From everyday questions to specialized queries, IDNLearn.com has the answers. Our experts provide timely and precise responses to help you understand and solve any issue you face.

During times of financial crisis, governments may not be able to repay bondholders in a timely manner.

A. True
B. False

Sagot :

GinnyAnsweridn

Final answer:

During financial crises, governments may face challenges repaying bondholders due to deficits and investor confidence issues.


Explanation:

In times of financial crisis, governments may indeed struggle to repay bond holders in a timely manner. This can occur when a government's expenditures exceed its revenue, leading to deficits that must be financed through borrowing. If investors lose confidence in a government's ability to repay its debt, they may demand higher interest rates or refuse to purchase government bonds, potentially leading to defaults.


Learn more about Government Debt and Financial Crisis here:

https://brainly.com/question/37496363


We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Your questions find clarity at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.