What Is the Washington Consensus

question 25

Multiple Choice

What is the Washington Consensus?

• A)A set of policies advocated by developed countries that are intended to help less developed countries grow their economies
• B)A policy by the United States that allows for infant industry protection by emerging economies
• C)An international movement to encourage democratization in less developed countries,
• As democracy is a fundamental stepping stone to development
• D)An international agreement by developed countries not to import goods from countries that have poor working conditions

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Definitions:

Periodic Rate

The interest rate for a specific period, often rephrased as the interest rate applicable over regular intervals such as monthly or quarterly.

Effective Interest Rate

The real rate of interest earned or paid on an investment or loan, taking into account the effect of compounding.

Finance Charge

A fee representing the cost of credit, or the cost of borrowing, including interest and other charges.

Annual Effective Rate

The annual rate that reflects the compounding of interest, offering a true reflection of the financial product's profitability.