What was Alexander Hamiltonâ€™s main reason for insisting that all the nations debts must be paid in full? A. So the country could borrow in the futureB. So the country would be seen as a world leaderC. Because many citizens needed the moneyD. Because the nation had a moral obligation to do so

Question

Social Studies

Tanya Briggs

13 August, 15:51

What was Alexander Hamiltonâ€™s main reason for insisting that all the nations debts must be paid in full? A. So the country could borrow in the futureB. So the country would be seen as a world leaderC. Because many citizens needed the moneyD. Because the nation had a moral obligation to do so

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Answers (1)

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Emiliano Glenn · Answer 1

The answer is A) So the country could borrow in the future.

Explanation:

If a country does not pay its debt in full and at the right time, it affects the credibility of the country such that it will be difficult for the country to borrow again since the last time the country borrowed the country defaulted. However if a country pays its debt in full, it creates confidence for people to invest in government securities and so that the public debt can become another means of income for the government. This conclusion reached by Alexander Hamilton was based on the British Financial System which highly esteemed payment of debt in full and on time.