Answered

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

A. True
B. False

Sagot :

GinnyAnswer

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


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