Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

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


Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.