Excessive debt might lead a nation to consider default as an option if:
A) the international court of justice is not meeting.
B) it has no real assets to sell.
C) repayment is more painful than the costs of default.
D) the other nations do not threaten military action.

Question

Quizplus · Accepted Answer

If the nation believes that the costs of repayment are too high and would cause too much pain for the population, default may be considered as an option. Factors such as the lack of assets or the absence of international legal enforcement may also be contributing factors, but they are not the primary driver behind the decision to default. The threat of military action from other nations is a separate concern altogether.

Excessive Debt Might Lead a Nation to Consider Default as an Option