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- Subject
- The External Debt and Financial Criseseconomics-mcqs › the-external-debt-and-financial-crises
- Published
- 27 May 2019
- Last updated
- 28 May 2026
Explanation
While dependable positive real interest rates, improved efficiency in state enterprises, and market liberalization tend to discourage capital flight by making domestic investments more attractive, raising taxes on capital gains often fails to reduce capital flight and may even incentivize investors to move their capital elsewhere.
More The External Debt and Financial Crises MCQs
Practice related questions from the same subject.
- 1.What were the primary focuses of the Baker Plan (1985) and the Brady Plan (1989), respectively?
- 2.Which of the following statements is incorrect?
- 3.Following 1979, the World Bank began offering loans that focused on reforms in areas such as trade, agriculture, industry, public enterprises, finance, energy, and education. What were these loans called?
- 4.Which of the following conditions were present in Thailand, Indonesia, Malaysia, the Philippines, and Korea during the year before the 1997 financial crisis?
- 5.Which nation was not considered a significant debtor among less developed countries (LDCs) in 2001?
- 6.What does the debt-service ratio represent?
- 7.Which statement below is incorrect regarding external debt?
- 8.Which two middle-income nations had their debt forgiven or reduced by the U.S. government during the Persian Gulf War in 1990?
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