A major reason that a public debt cannot bankrupt the Federal government is because:
A)the public debt is mostly held by foreigners.
B)the Federal government has the Social Security Trust Fund.
C)the public debt can be easily refinanced.
D)the Federal government can draw on its gold reserves.

Question

Quizplus · Accepted Answer

The Federal government can refinance its debt by issuing new securities to pay off maturing ones, ensuring it can manage its obligations without going bankrupt.

A Major Reason That a Public Debt Cannot Bankrupt the Federal