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The External Debt and Financial Criseseconomics-mcqs › the-external-debt-and-financial-crises
Published
27 May 2019
Last updated
28 May 2026

Browse all The External Debt and Financial Crises MCQs

Which of the following measures does NOT help in decreasing capital flight from the countries where the capital originates?

Multiple choice question for The External Debt and Financial Crises. Select an option, then review the explanation below.

Choose the correct answer

Explanation

While dependable positive real interest rates, improved efficiency in state enterprises, and market liberalization tend to discourage capital flight by making domestic investments more attractive, raising taxes on capital gains often fails to reduce capital flight and may even incentivize investors to move their capital elsewhere.

Practice related questions from the same subject.

  1. 1.What were the primary focuses of the Baker Plan (1985) and the Brady Plan (1989), respectively?
  2. 2.Which of the following statements is incorrect?
  3. 3.Following 1979, the World Bank began offering loans that focused on reforms in areas such as trade, agriculture, industry, public enterprises, finance, energy, and education. What were these loans called?
  4. 4.Which of the following conditions were present in Thailand, Indonesia, Malaysia, the Philippines, and Korea during the year before the 1997 financial crisis?
  5. 5.Which nation was not considered a significant debtor among less developed countries (LDCs) in 2001?

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