The U.S. federal government is unlikely to default on its bonds because

Question

Quizplus · Accepted Answer

The federal government has the ability to collect taxes and sell securities to the Fed, which provides them with a steady source of revenue and enables them to meet their debt obligations. Additionally, the U.S. government has a history of honoring its debt obligations, further reducing the likelihood of default. The other choices are not accurate, as bonds are not necessarily long-term or insured, borrowing from states and businesses is not a reliable solution, and foreign investors are not the only source of funds for the government.

The US Federal Government Is Unlikely to Default on Its Bonds