Public Finance & Governance
Quick practice
Question 1 of 5
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?
Both Statement-1 and Statement-II are correct, but Statement-II does not explain Statement-I
Statement-I is incorrect, but Statement-II is correct
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
Statement-I is correct, but Statement-II is incorrect
Concepts
Get unlimited practice with UPSC CSE - GS subscription
Boost your performance with adaptive practice tests
Practice every concept in the syllabus
Compare your speed and accuracy with your peers
Download the app and practice on the go