If a government does not pay interest or principal on its debt when due, it is:
A)in default
B)a canny borrower
C)a rip-off artist
D)in escrow

Question

Quizplus · Accepted Answer

Default refers to the failure to pay interest or principal on debt when it is due. It is a serious issue and can lead to severe consequences for the country's economy, reputation, and ability to access credit in the future. Therefore, defaulting on debt is not an acceptable or desirable option.

If a Government Does Not Pay Interest or Principal on Its