For all bonds to be indistinguishable,
A) all consumers must never be expected to default on their debts.
B) the government must guarantee all bonds.
C) all consumers must be identical.
D) they must be traded through financial intermediaries.
E) only government can issue bonds.

Question

Quizplus · Accepted Answer

All consumers must never be expected to default on their debts because if there is a possibility of default, then the bonds will not be indistinguishable.

For All Bonds to Be Indistinguishable