Question
What distinguishes a Treasury bill from a Treasury note or bond?
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Answer
A T-bill is short-term; notes are medium-term; bonds are long-term.
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Question
Why are sovereign bonds usually the lowest credit-risk bonds within a country?
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Answer
Sovereigns can tax and, in their own currency, print money.
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Question
How do developed-market sovereign bonds differ from emerging-market sovereign bonds in exam terms?
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Answer
Developed are benchmark, more stable; emerging carry more political and currency risk.
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Question
If a national government issues debt in its own currency, what key credit-support feature does it have?
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Answer
It may be able to print money to meet obligations.
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