Name a default on debt and obligations by a major financial institution that disrupts the stability of the economic system ?
Correct answer: B. Debt bomb
- A. Debt blast
- B. Debt bomb
- C. Bad debt
- D. None of them
Explanation
A debt bomb is a large debt-related failure or default capable of spreading financial instability through the wider economy. Bad debt usually means an individual loan or receivable that is unlikely to be recovered.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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