Borrowing in One's Own Currency Has Many Advantages for Low-Income

question 69

Multiple Choice

Borrowing in one's own currency has many advantages for low-income nations (such as Chile) . Which of the following is NOT an advantage?

• A) Service payments are usually retained in the nation.
• B) Defaults are typically not an issue.
• C) The nation is never obliged to repay-it can roll over the debt in perpetuity.
• D) More national debt actually helps credit markets deepen and mature.

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Definitions:

Psychological Ownership

The feeling of possession individuals experience for things they do not legally own, often leading to stewardship behavior for that object or role.

Legal

Pertaining to the law or the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Pay Plan

A structured compensation system for employees that outlines the wages, salaries, benefits, and incentives offered by an employer.

Skill-based Pay Plans

Compensation systems that determine employees' pay rates based on their skills, knowledge, or proficiency rather than job titles or positions.