The Government of Ugania Had Been Extending Huge Amounts of Loans

question 4

Multiple Choice

The government of Ugania had been extending huge amounts of loans to the business enterprises in the country. However, the borrowers failed to generate the profits necessary to repay their debts. As a result, national banks in Ugania had a lot of nonperforming assets on their books, and the Uganian currency was devalued. In this context, the business enterprises in Ugania are most likely to face which of the following type of risk?

• A)Ethical
• B)Economic
• C)Technological
• D)Legal
• E)Sociological