The Factors That Affect the Probability of a Nation's Repayment

question 29

Multiple Choice

The factors that affect the probability of a nation's repayment versus default include the:

• A) exchange rate of its currency with that of the lender and whether the lender is private or official.
• B) conditions set out in the original loan agreement plus the percent of the population in the workforce.
• C) ability to earn export revenues and the nation's past credit history.
• D) volatility of its output and how burdensome the debt repayment is.

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Definitions:

Pleuritis

Inflammation of the pleura, the thin tissue layers that line the chest cavity and cover the lungs.

Thoracentesis

A medical procedure used to drain fluid or air from the pleural space around the lungs.

Fluid

A substance that has no fixed shape and yields easily to external pressure; can be a gas or a liquid.

Pleura

The thin membrane that envelops the lungs and lines the inner surface of the chest wall, performing a crucial role in respiratory movement and protection.