Since Foreign Credit Dries Up in Crises When It Is

question 61

Multiple Choice

Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by

• A) cutting off imports of goods.
• B) allowing the exchange rate to float.
• C) using equity finance only.
• D) accumulating high levels of international reserves.
• E) avoiding the international capital market.

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Definitions:

Regular Cash Dividend

A payment made to shareholders from a company's earnings on a routine basis.

Normal Course of Business

This term refers to the standard, usual, routine activities and operations that a business engages in to generate revenue.

Cash Payment

A transaction in which the payment for goods or services is made in cash at the time of purchase.

Declaration Date

The specific date on which a company announces an upcoming dividend payment.