Since Foreign Credit Dries Up in Crises When It Is

question 61

Multiple Choice

Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by

• A) cutting off imports of goods.
• B) allowing the exchange rate to float.
• C) using equity finance only.
• D) accumulating high levels of international reserves.
• E) avoiding the international capital market.

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Definitions:

Managerial Accounting Reports

Financial documents specifically prepared for a company's management to assist in strategic decision-making and operational planning.

According to GAAP

As per Generally Accepted Accounting Principles, which are a set of accounting standards and procedures used in the United States.

Financial Accounting Reports

Formal documents that communicate an organization's financial performance and position to external stakeholders, including income statements and balance sheets.

GAAP

Generally Accepted Accounting Principles; a set of rules and standards for financial reporting used in the United States.