Which of the Following Is a Reason That Developing Countries

question 104

Multiple Choice

Which of the following is a reason that developing countries are running large surpluses?

• A) They are required to do so by IMF.
• B) They have defaulted on international loans.
• C) They have pegged exchange rates and thus the growth of exports must drive surplus up.
• D) They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows.
• E) They don't know how to manage their surpluses.

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Definitions:

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed and incorporated into the dominant culture of a society.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, primarily located in North America.

Stratification

The arrangement or classification of something into different groups, levels, or layers, often used to describe societal layers based on wealth, power, or social status.

Contest

A competition or challenge where individuals or groups compete against each other to achieve a particular objective.