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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
External debt grows as a result of deficits in the international balance of payments related to goods, services, and income. When debts are denominated in U.S. dollars, the dollar's appreciation in the 1990s made servicing these debts more costly. International lenders often required LDC governments to guarantee private debts. However, it is incorrect to say that LDCs relied more heavily on aid from DCs during the 1990s.
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 of the following measures does NOT help in decreasing capital flight from the countries where the capital originates?
- 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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