A key difference between sovereign default and corporate default is:
A)unlike a corporation,a country facing difficulty meeting its financial obligations cannot default.
B)unlike corporate debt,sovereign debt prices are not inverse to yields.
C)unlike a corporation,any country can turn to the EMU to pay off its debts.
D)unlike a corporation,a country facing difficulty meeting its financial obligations typically has the option to print more currency.

Question

Quizplus · Accepted Answer

The key difference between sovereign default and corporate default is that unlike a corporation, a country facing difficulty meeting its financial obligations typically has the option to print more currency. This is not an option available to a corporation, which must rely on meeting its debt obligations through revenue or selling assets.

A Key Difference Between Sovereign Default and Corporate Default Is