Question at position 34 Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. TrueFalse

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The question states that bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. 
Option 1: True. This statement aligns with widely taught credit risk concepts in fixed income and finance. Developed-country sovereign bonds, especially U.S. Treasury securities, are generally considered to have very low default risk due to strong credit histories, large tax bases, and credible central banks. Investors typically treat them as near risk-free benchmarks in portfolio construction. 
Option 2: False. This option would imply that there is a meaningful/default risk attached to these bonds. While no investment is absolutely risk-free, the consensus on U.S. Treasuries is that the probability of default is extremely low, and the market pricing reflects that; labeling the default risk as significant would conflict with common models of sovereign risk in developed economies. 
Option 3 (implicit in some assessments): If interpreted to mean there is never any risk at all, it would be an overstatement, but in practice the relative risk difference is minuscule for highly developed sovereigns. This makes the claim in the stem more accurate than not, given standard credit-rating assessments. 
Option 4 (implicit hedge): Some readers might think about unique geopolitical or fiscal scenarios that could alter risk perception temporarily; however, the prevailing view remains that default risk on U.S. Treasuries and similar developed-country government bonds is negligible compared to other asset classes. 
In summary, the statement corresponds to the conventional evaluation of sovereign default risk for major developed economies, with near-zero default risk in ordinary assessments, while the other phrasing would misrepresent the established understanding.

Question at position 34 Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. TrueFalse

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Question at position 33 Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. TrueFalse

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Question at position 34 Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. TrueFalse

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Similar Questions

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Question at position 33 Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. Bonds issued by the U.S. Treasury and other developed central governments are viewed as having little to no default risk. TrueFalse

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Part 1Match (by number) each capital market instrument with its description:Part 2[table] Capital Market Instrument | Government Security | enter your response here [/table]