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Why Was the World So Concerned About Greece Defaulting on Its

Question 105

Multiple Choice

Why was the world so concerned about Greece defaulting on its debt?

A) People were afraid Greece would be sold to another country to pay its debts.
B) The U.S.government held a large quantity of Greek debt,so there was a concern that a Greek default would cause a U.S.default.
C) Countries in the European Union held a large quantity of Greek debt,so there was a concern that a Greek default would cause other European countries to default.
D) There were concerns that Greece would devalue its currency,leading to a severe recession.
E) Greece is one of the largest consumers in the world,so there were fears that a Greek default would lead to a collapse in world demand.

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