Early Models of Economic Development Argued That Western Governments Had

question 26

Multiple Choice

Early models of economic development argued that Western governments had to help developing countries out of their traditional stage by:

• A) offering foreign aid
• B) offering bank loans
• C) increasing trade
• D) encouraging foreign investment
• E) All of the above

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Definitions:

Currency

A system of money in general use in a particular country or region, serving as a medium of exchange, unit of account, and store of value.

Arbitrageur

Someone who takes advantage of tiny differences in the exchange rate across markets by simultaneously purchasing a currency in one market and selling it in another market.

Foreign Exchange

Trading one currency for another or transforming one currency into a different currency.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one country's currency is worth in terms of another's.