Why Has the IMF Come in for Widespread Criticism for Its

question 88

Multiple Choice

Why has the IMF come in for widespread criticism for its handling of the Asian financial crisis?

• A)It refused to make loans to any of the countries whose currencies were under speculative attack.
• B)Its policies did not sufficiently punish speculators with losses, giving rise to moral hazard.
• C)Its policies led to unsustainably low interest rates in a number of Asian countries.
• D)Its policies failed to lead to sufficient hardship for citizens in a number of Asian countries, giving rise to moral hazard.

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Definitions:

Paid

The status of a financial obligation that has been fulfilled, indicating that no debt remains.

Year

A period of time consisting of 365 days, or 366 in a leap year, used as a basic unit of time to measure durations and align calendars.

Accumulated Depreciation

Accumulated depreciation accounts for the total amount of depreciation expense that has been claimed over the life of an asset, reducing its book value.

Balance Sheet

A report that lists a business's assets, obligations, and the equity of its shareholders on a specific date.