Highly Touted Structural Adjustment Programs (SAPs) Have Turned Out to Be

question 29

Multiple Choice

Highly touted Structural Adjustment Programs (SAPs) have turned out to be

• A) used by dictatorial leaders to divert much needed funds to their own use.
• B) not very helpful, because most recipients take the money associated with the loan and never carry out the reforms they are supposed to make.
• C) one means of getting rid of power-hungry individuals in a few places.
• D) helpful in countries that want to implement major reforms.
• E) most useful to women who need startup money for new businesses.

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Definitions:

Break-Even Default Rate

The rate of default at which a lender breaks even on a loan, neither earning a profit nor incurring a loss.

Monthly Interest Rate

The interest rate expressed as a monthly percentage, reflecting the cost of borrowing or the earnings on savings for one month.

Credit Policy

Guidelines that a company follows to determine credit terms for customers, which can affect the company's cash flow and bad debt levels.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it becomes too low, calculated based on lead time and sales velocity.