Which Is NOT TRUE Regarding Foreign Debt

question 48

Multiple Choice

Which is NOT TRUE regarding foreign debt?

• A) Much of the developing world is deeply in debt to foreign governments and banks.
• B) The origins of the debt crisis lie in the 1910s and 1920s.
• C) Debts raise concerns about the stability of the international monetary system.
• D) Debt repayment can be difficult for developing countries.
• E) All of the above are false.

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Definitions:

De Facto Corporation

A business entity that operates as if it were a corporation although it has not completed the legal formalities for incorporation, and may be treated as a corporation by courts.

De Jure Corporation

A corporation that has fully complied with all legal requirements for its establishment, and thus has legal recognition.

Corporation by Estoppel

A legal doctrine that prevents a party from denying the corporation's existence if they have dealt with it as if it were a legal corporation.

Subchapter S Corporation

A form of corporation in the United States that is taxed under Subchapter S of the Internal Revenue Code, allowing profits to be taxed at the shareholder level rather than at the corporate level.