How Did Reagan's Foreign Policy Toward Communism, Known as the Reagan

question 58

Multiple Choice

How did Reagan's foreign policy toward communism, known as the Reagan Doctrine, differ from the earlier Cold War policy of containment?

• A) Reagan promised to "roll back" communism by providing support to anticommunist insurgents and resistance movements anywhere in the world.
• B) Calling it "an evil empire," Reagan was determined to provoke the Soviet Union into a nuclear war.
• C) Reagan favored a stronger reliance on détente to improve relations with the Soviet Union.
• D) Reagan cut defense spending and halted supplies of weapons and antiaircraft missiles to nations fighting communist insurgents.

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Definitions:

Collateralized Debt Obligation

A complex structured finance product that pools together cash flow-generating assets and repackages them into tranches for sale to investors.

Credit Default Swap

A financial derivative or contract that allows an investor to "swap" or offset their credit risk with that of another investor.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Asset Securitization

The process of pooling various types of contractual debt such as mortgages, and selling their related cash flows to third party investors as securities.