Which institution is least likely to default on a bond?
A) local government
B) small corporation
C) U.S. federal government
D) large corporation

Question

Quizplus · Accepted Answer

The U.S. federal government is considered the least likely institution to default on a bond due to its ability to print money and its history of paying back its debts. Local governments and small corporations may have limited financial resources and may be at a higher risk of default. Large corporations may also have a higher risk of default compared to the federal government, depending on their financial health and industry.

Which Institution Is Least Likely to Default on a Bond