Consider the following statements:
Statement I - If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.
Statement II - The USA Government debt is not backed by any hard assets, but only by the faith of the Government.
Which one of the following is correct in respect of the above statements?
a. Both Statement I and Statement II are correct and Statement II explains Statement I
b. Both Statement I and Statement II are correct and Statement II does not explain Statement I
c. Statement I is correct, but Statement II is incorrect
d. Statement I is incorrect, but Statement II is correct