Which of the Following Is FALSE

question 4

Multiple Choice

Which of the following is FALSE?

• A)Current account deficits must be financed through inflows of capital.
• B)Loans from abroad add to a country's stock of external debt and generate debt service.
• C)Borrowed funds are always used in a manner that contributes to the expansion of the country's productive capability.
• D)Debt service can become an unsustainable burden that holds back development.
• E)All countries have external debt.

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Definitions:

Certain Events

Specific occurrences or happenings that are distinct and can be identified.

Probability

Is a measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Certainty

A state of being sure or confident about something without any doubt.

Uncertainty

The state of being unsure or not having all the information, which makes outcomes unpredictable.