Aside from humanitarian concerns, which of the following is one reason on nation is motivated to provivde foreign aid to a less developed country?
A. Foreign aid is tax deductible
B. The nation providing foreign aid decreases its unemployment.
C. The nation providing foreign aid gains more control over its imports. D. Foreign aid can increase a nation's market for its own goods.
All of the following are accurate statments about the debt problem in LCDs EXCEPT that?
A. In some countries, debt is greater that GDP
B. A rapid increase in the price of oil caused a great rise in debt
C.The rise in value of the U.S. dollar caused a rise in debt.
D. debt holders often seize government property when loans are not repaid
The Primary measure of a country's development is
A.average income B.average life expectanncy
C. per capita gorss domestic product D.percentage of the population with a college degree.
Define the term with it's word:
An agreement between the debtor nation and the IMF in which the nation agrees to revise its economic policy?
(Stabilizing Program),(Development),(Foreign direct investment FDI),(Foreign portfolio investment)(Glasnost)or(International Monetary Fund IMF)
Word with Definition: The establishment of an enterprise by a foreigner? (Stabilizing Program),(Development),(Foreign direct investment FDI),(Foreign portfolio investment)(Glasnost)or(International Monetary Fund IMF)
Word With Definition: Organization formed to stabilize international exchange rates and facilitate development? (Stabilizing Program),(Development),(Foreign direct investment FDI),(Foreign portfolio investment)(Glasnost)or(International Monetary Fund IMF)
Financing derived from the savings of a country's citizens is called: a.foreign investment
b.internal financing
c.domestic investment
d.foreign direct investment
A true statment about the World Bank would be that it?
A.was founded in 1965
B.Focuses on emergency aid to LDCs following natural disasters
C.raises money on the financial markets and form meeber nations
D.is financed maily by voluntary contributions from generous individuals around the world.
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To answer these questions and understand the reasoning behind the answers, here's how you can approach each one:
1. Question: Aside from humanitarian concerns, which of the following is one reason a nation is motivated to provide foreign aid to a less developed country?
Answer: D. Foreign aid can increase a nation's market for its own goods.
Explanation: In order to determine the correct answer, we need to understand the different motivations a nation may have for providing foreign aid. To do this, we can analyze each of the options provided:
A. Foreign aid is tax deductible: This may be a motivation for individuals or organizations providing foreign aid, but it does not directly address the motivation for a nation as a whole.
B. The nation providing foreign aid decreases its unemployment: While providing foreign aid may indirectly impact employment through economic development in recipient countries, this is not a primary motivation for a nation to provide aid.
C. The nation providing foreign aid gains more control over its imports: This option is incorrect as foreign aid is not typically provided to gain control over imports.
D. Foreign aid can increase a nation's market for its own goods: This is the correct answer because providing foreign aid can create goodwill and diplomatic relationships, potentially leading to increased exports for the nation providing aid.
2. Question: All of the following are accurate statements about the debt problem in LDCs EXCEPT that?
Answer: C. The rise in value of the U.S. dollar caused a rise in debt.
Explanation: To determine the correct answer, let's analyze each option:
A. In some countries, debt is greater than GDP: This is an accurate statement. In certain cases, the debt of a less developed country can exceed its Gross Domestic Product (GDP).
B. A rapid increase in the price of oil caused a great rise in debt: This is also an accurate statement. A sudden increase in oil prices can lead to increased debt for countries heavily reliant on oil imports.
C. The rise in value of the U.S. dollar caused a rise in debt: This option is incorrect. The rise in the value of the U.S. dollar does not directly cause a rise in debt in less developed countries.
D. Debt holders often seize government property when loans are not repaid: This is an accurate statement. In cases where loans are not repaid, debt holders can seize government property as a form of repayment.
3. Question: The primary measure of a country's development is:
Answer: C. Per capita gross domestic product (GDP).
Explanation: To determine the primary measure of a country's development, let's analyze each option:
A. Average income: While average income is an important measure, it does not fully capture a country's development as it might not reflect income distribution or other non-economic factors.
B. Average life expectancy: Life expectancy is a key indicator of societal well-being, but it does not account for economic factors or other aspects of development.
C. Per capita gross domestic product (GDP): This is the correct answer. Per capita GDP measures the average economic output per person in a country and is often used as an indicator of a country's level of development.
D. Percentage of the population with a college degree: While education is crucial for development, measuring development solely based on the percentage of the population with a college degree is limited as it does not consider other factors.
4. Question: An agreement between the debtor nation and the IMF in which the nation agrees to revise its economic policy?
Answer: Stabilizing Program.
Explanation: To identify the correct term, we can compare the options:
A. Stabilizing Program: This is the correct answer as it describes an agreement between a debtor nation and the IMF to revise its economic policy with the aim of stabilizing the economy.
B. Development: This option does not match the given definition.
C. Foreign direct investment (FDI): This option does not match the given definition.
D. Foreign portfolio investment: This option does not match the given definition.
E. Glasnost: This option does not match the given definition.
F. International Monetary Fund (IMF): This option describes the organization responsible for providing financial assistance and guidance to countries experiencing economic difficulties, rather than the agreement between the debtor nation and the IMF.
5. Word with Definition: The establishment of an enterprise by a foreigner?
Answer: Foreign direct investment (FDI).
Explanation: To match the term with its definition:
A. Stabilizing Program: This option does not match the given definition.
B. Development: This option does not match the given definition.
C. Foreign direct investment (FDI): This is the correct answer as it describes the establishment of an enterprise by a foreigner in a country.
D. Foreign portfolio investment: This option does not match the given definition.
E. Glasnost: This option does not match the given definition.
F. International Monetary Fund (IMF): This option does not match the given definition.
6. Word with Definition: Organization formed to stabilize international exchange rates and facilitate development?
Answer: International Monetary Fund (IMF).
Explanation: To match the term with its definition:
A. Stabilizing Program: This option does not match the given definition.
B. Development: This option does not match the given definition.
C. Foreign direct investment (FDI): This option does not match the given definition.
D. Foreign portfolio investment: This option does not match the given definition.
E. Glasnost: This option does not match the given definition.
F. International Monetary Fund (IMF): This is the correct answer as it accurately describes the organization formed to stabilize international exchange rates and facilitate development.
7. Financing derived from the savings of a country's citizens is called:
Answer: B. Internal financing.
Explanation: To identify the correct term:
A. Foreign investment: This option refers to investment made by foreign entities.
B. Internal financing: This is the correct answer as it describes financing derived from the savings of a country's citizens.
C. Domestic investment: This option refers to investment made within a country, regardless of the source of financing.
D. Foreign direct investment: This option refers specifically to investment made by a foreign entity in the establishment of an enterprise.
8. A true statement about the World Bank would be that it?
Answer: C. Raises money on the financial markets and from member nations.
Explanation: To determine the true statement about the World Bank:
A. The World Bank was founded in 1965: This option is incorrect as the World Bank was actually founded in 1944.
B. The World Bank focuses on emergency aid to LDCs following natural disasters: This option is incorrect as emergency aid is typically provided by other organizations such as the United Nations or humanitarian agencies.
C. The World Bank raises money on the financial markets and from member nations: This is the correct answer as the World Bank does raise funds through borrowing in financial markets and from contributions made by its member nations.
D. The World Bank is financed mainly by voluntary contributions from generous individuals around the world: This option is incorrect as the World Bank primarily relies on financial markets and member nation contributions for funding, rather than individual donations.