The Three Sources of Private Direct Investment in Developing Nations

question 140

Multiple Choice

The three sources of private direct investment in developing nations are

• A) bank loans, government loans, and Eurobond issues.
• B) bank loans, portfolio investments, and foreign direct investments.
• C) portfolio loans, IMF loans, and government loans.
• D) foreign direct investment, government loans, and Eurobond issues.

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Definitions:

Direct Private Long-term Debt Financing

A method of funding where companies borrow money directly from lenders on a long-term basis without public issuance through financial markets.

Public Issues

Refers to the offering of securities, like stocks or bonds, to the public to raise capital.

Renegotiate

The process of revising the terms of a contract or agreement.

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the market.