Attempt this previous-year question. The correct option stays hidden until you choose.
Consider the following statements :
Statement-I : If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.
Statement-II : The USA Government debt is not backed by any hard assets, but only by the faith of the Government. Which one of the following is correct in respect of the above statements ?
Pick an option to check yourself.
• Correct Answer: D
• Statement-I is incorrect: a default does not extinguish bondholders' legal claims; payments may be delayed or restructured but rights remain.
• Statement-II is correct: US Government debt is backed by the full faith and credit of the government, not by hard assets.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram