When a Country No Longer Is Willing or Able to Make

question 63

Multiple Choice

When a country no longer is willing or able to make the scheduled payments on its borrowed capital, this often develops into what is known as a

• A) lender of last resort condition.
• B) debt crisis.
• C) fluctuating condition in the national currency.
• D) decline in global capital mobility.

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Definitions:

Toronto 35 Index

An index that was once used to represent the performance of the 35 most significant stocks listed on the Toronto Stock Exchange.

Basis

In finance, refers to the difference between the spot price of an asset and its future price, or to the initial value used for tax purposes.

Futures Price

The agreed-upon price for the purchase or sale of an asset at a future date in a futures contract.

Spot Price

The current market price at which an asset, such as securities, commodities, or currencies, can be bought or sold for immediate delivery.