If the Government of a Developing Country Is Having Difficulty

question 172

Multiple Choice

If the government of a developing country is having difficulty selling bonds to build an irrigation system, it could go to the

• A) World Bank.
• B) Federal Reserve Bank.
• C) United Nations International Bank.
• D) International Monetary Organization.

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Definitions:

Capital Lease

A lease agreement that is recorded as an asset on the lessee's balance sheet because it effectively transfers the risks and benefits of ownership from the lessor to the lessee.

Lease As Purchase

An agreement where the lessee has the option or obligation to purchase the leased asset at the end of the lease term.

Mortgage Payable

A long-term liability reflecting the amount of money borrowed to purchase property, to be repaid over a set period with interest.

Specific Property

A clearly identified piece of property, which can be real or personal, distinguished from all other properties.