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Sovereign debt is a debt instrument guaranteed by the government. The other names for sovereign debts are sovereign bonds or government bonds. They are issued in the currency of the issuer's country.
Under the doctrine of sovereign immunity, creditors cannot force repayment of sovereign debt. It is subject to compulsory rescheduling, interest rate reduction, or even repudiation. The only protection available to the creditors is the threat of loss of credibility and lowering the sovereign debt rating at the international level. This remedy, if applied, makes the sovereign more difficult to create debt in the future.
Federal Reserve System The central banking institution in the United States responsible for determining United States monetary strategy, including the setting of interest rates
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The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?
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