SIE Exam Question 659: Answer and Explanation

Question: 659

Which of the following is a type of debt issued by a national government in a foreign currency in order to finance the issuing country's growth and development?

• A. Domestic debt
• B. Eurodebt
• C. Foreign debt
• D. Sovereign debt

Correct Answer: D

Explanation:

Sovereign debt is issued by a national government in a foreign currency in order to finance the issuing country's growth and development.