Which of the Following Is an Obstacle Poor Countries Face

question 71

Multiple Choice

Which of the following is an obstacle poor countries face in seeking development finance funds from foreign savers?

• A) Governments of many rich countries impose restrictions on capital flows to poor countries.
• B) Many poor countries impose restrictions on the inflow of foreign funds.
• C) The difficulty of repaying loans denominated in foreign currency.
• D) The difficulty of taxing the interest income earned by foreigners on loans to poor countries.

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Definitions:

Beta Coefficient

An index of a stock's fluctuation compared to the broader market, signifying its comparative risk.

Negative Beta

A measure indicating that an investment's returns are expected to move in the opposite direction of the overall market returns.

Treasury Bills

Short-term government securities with maturity periods typically less than one year, considered low-risk investments.

Long Bonds

Bonds with maturities typically longer than 10 years, often used to lock in interest rates.