Puerto Rico Warns More Defaults Are Coming

Puerto Rico Warns More Defaults Are Coming

Assessment

Interactive Video

Business, Social Studies

University

Hard

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FREE Resource

Puerto Rico faces a severe debt crisis with $70 billion in liabilities and an inability to use bankruptcy for restructuring. The US Congress is debating a bill to allow debt restructuring and establish a federal oversight board. Historical economic changes, such as the removal of tax breaks, have worsened the situation. Political debates focus on the need for a control board and bankruptcy access, with differing views on the best approach to resolve the crisis.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the total amount of debt that Puerto Rico is struggling with?

$50 billion

$70 billion

$150 billion

$100 billion

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What significant change affected Puerto Rico's economy after 2006?

Phasing out of special tax breaks

Introduction of new tax breaks

Rise in employment rates

Increase in population

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the proposed solutions by Republican lawmakers to address Puerto Rico's financial crisis?

Increase in sales tax

Establishment of a Control Board

Reduction in public spending

Introduction of new bonds

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the stance of the Obama administration regarding Puerto Rico's financial crisis?

Complete independence for Puerto Rico

Federal oversight with a bankruptcy process

Immediate debt forgiveness

No intervention from the federal government

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do bond investors and insurers oppose the proposed solutions for Puerto Rico?

They want more control over the island's economy

They fear it will lead to more debt

They believe it will increase their profits

They are concerned about potential losses