Original Sin for a Developing Country Borrower Refers to the Tendency

question 23

Multiple Choice

Original Sin for a developing country borrower refers to the tendency

• A) For lenders to require debt to be short term or denominated in foreign currency
• B) For these borrowers to default more often
• C) For foreign lenders to suddenly stop lending
• D) These borrowers to default at surprisingly low levels of debt
• E) For lenders to require debt to be long term

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Definitions:

Probability

The likelihood or chance of an event occurring, often expressed as a number between 0 and 1.

Statistic

A numerical value that describes a characteristic of a sample of data, which can be used to estimate a population parameter.

Complexity

The state or quality of being intricate or complicated, often characterized by a large number of interdependent parts.

Physical Strain

The stress or discomfort experienced by the body due to physical activities, often leading to fatigue or injury.