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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Mention the theory of inflation or price increase that results from so-called excess demand ?
Term a tax or duty rebate on imported goods that are exported at a later date ?
Name the methodology by which members of the EMS maintain their currency exchange rates within an agreed upon range with respect to other member countries ?
What is called the centers around the ability of a national economy to generate enough interests and principal on its foreign debt ?
What is artificial currency ?
Which of the following is referred by the phrase trade balance ?