In the Early 1960s South Korea Was an Extremely Poor

question 87

Multiple Choice

In the early 1960s South Korea was an extremely poor country. However, in 1963, the country began a remarkable economic ascent. What was a direct cause of this?

• A) a shift in strategy that emphasized exports rather than imports
• B) an increase in wages
• C) an increase in the labor force
• D) an increase in the money supply
• E) an emphasis on education, leading to a highly productive labor force

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Definitions:

Interest Rate Parity

A financial theory which suggests that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Arbitragers

Traders who buy and sell assets, such as stocks or commodities, in different markets or forms to profit from differing prices for the same asset.

Risk-Free Profits

Profits made from an investment that is considered to have no risk of financial loss.

Swap Market

The swap market is a financial market where parties exchange streams of cash flows or other financial instruments for a set period, often to manage risk or obtain better loan terms.