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- Subject
- The External Debt and Financial Criseseconomics-mcqs › the-external-debt-and-financial-crises
- Published
- 27 May 2019
- Last updated
- 28 May 2026
Which of the following statements is incorrect?
Multiple choice question for The External Debt and Financial Crises. Select an option, then review the explanation below.
Explanation
Option A is false because the debt service to GNP ratio is not always a reliable indicator of the debt burden. The other statements are accurate: many large LDC borrowers accumulated debt based on favorable credit ratings; middle-income countries hold the majority of LDC debt; and sub-Saharan Africa's debt burden can be as severe as that of middle-income countries.
More The External Debt and Financial Crises MCQs
Practice related questions from the same subject.
- 1.What were the primary focuses of the Baker Plan (1985) and the Brady Plan (1989), respectively?
- 2.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?
- 3.Which of the following conditions were present in Thailand, Indonesia, Malaysia, the Philippines, and Korea during the year before the 1997 financial crisis?
- 4.Which nation was not considered a significant debtor among less developed countries (LDCs) in 2001?
- 5.What does the debt-service ratio represent?