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 statement
This questions was previously asked in
UPSC CSP GS Previous Year Paper 2024
Both Statement-I and Statement-II are correct and Statement-II Statement-I explains
Incorrect AnswerBoth Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
Incorrect AnswerStatement-I is correct, but Statement-II is incorrect
Incorrect AnswerStatement-I is incorrect, but Statement-II is correct
Correct AnswerExplanation:
Statement-I is incorrect, but Statement-II is correct
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By: Parvesh Mehta