What determines the creditworthiness of any organization, including the federal government?
A) The size of its debt relative to its income base.
B) The interest rate at which it can borrow money.
C) The length of time it has existed.
D) The length of time it is expected to operate.

Question

Quizplus · Accepted Answer

The creditworthiness of any organization, including the federal government, is determined by the size of its debt relative to its income base. This is known as the debt-to-GDP ratio, which measures the amount of debt relative to the size of the economy. The higher the debt-to-GDP ratio, the lower the creditworthiness of the organization.

What Determines the Creditworthiness of Any Organization, Including the Federal