Nigeria's Structural Adjustment Program

question 64

Multiple Choice

Nigeria's structural adjustment program

• A) privatized some publicly-owned firms, although not as quickly or extensively as had been expected.
• B) was enacted as part of a deal to receive aid from the World Bank and the IMF.
• C) was necessary due to a number of economic problems including waning oil revenue, a growing debt burden, and balance of payments difficulties.
• D) led to cutbacks in social welfare spending.
• E) All of the above statements are true.

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Definitions:

Conversion Ratio

In finance, it is the number of shares a holder can obtain by converting a convertible security into common stock.

Market Conversion Value

The value of a convertible security if it is converted into a specified number of shares of common stock, based on the current market price.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Credit Default Swap

A financial derivative allowing an investor to "swap" or offset the risk of credit loss from the default of a borrower.