Which of the following factors would best justify a decision to avoid investing in a coun- try's sovereign debt?
A) Freely floating currency
B) A population that is not growing
C) Suitable checks and balances in policymaking

Question

Quizplus · Accepted Answer

A population that is not growing may indicate economic stagnation or even decline, potentially limiting the government's ability to repay its debts. Freely floating currency and suitable checks and balances in policymaking do not necessarily provide justification for avoiding investment in sovereign debt.

Which of the Following Factors Would Best Justify a Decision