Since Foreign Credit Dries Up in Crises When It Is

question 61

Multiple Choice

Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by

• A) cutting off imports of goods.
• B) allowing the exchange rate to float.
• C) using equity finance only.
• D) accumulating high levels of international reserves.
• E) avoiding the international capital market.

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Definitions:

Ball and Socket

A type of joint that allows for rotational movement, as seen in the hip or shoulder joint.

Multiaxial

Describing joints that allow movement around multiple axes and planes.

Saddle

A supportive structure for a rider or load, typically used on horses, bicycles, motorcycles, or other vehicles.

Hinge

A mechanical bearing that connects two solid objects, typically allowing a limited angle of rotation between them.