Default risk is a potential problem for which of the following form(s) of money?
A) commodity
B) representative
C) credit
D) all of the above

Question

Quizplus · Accepted Answer

Default risk is specifically associated with credit money, as it represents the risk that the issuer of the credit money will not fulfill their financial obligations. Commodity and representative money do not inherently carry default risk as they are backed by physical commodities or a promise to exchange for a commodity, respectively.

Default Risk Is a Potential Problem for Which of the Following