An exception to the key difference between sovereign default and corporate bonds is:
A)member states of the U.S.
B)member states of the EMU.
C)member states of the African Union.
D)member states of the NAFTA.

Question

Quizplus · Accepted Answer

The key difference between sovereign default and corporate bonds is that sovereign default primarily affects the ability of a government to raise funds, while corporate bond default affects the ability of a company to raise funds. However, member states of the European Monetary Union (EMU) are an exception to this because they share a common currency and monetary policy, and therefore, a default by one member state could affect the entire EMU.

An Exception to the Key Difference Between Sovereign Default and Corporate