Arizona State University

ECN 306

Chapter 21

1)If a company or country with insurance against a certain kind of loss is less careful with regard to that loss than it would normally be because the insurance will pay in the event of a loss, we have an example of:

2. Which of the following resulted in a surge in international lending to developing countries in the mid-1970s to early 1980s?

3. The Asian financial crisis of 1997 began in Thailand because:

4. Beginning in about 1990, lending to and investing in developing countries began to increase. One explanation for this is that:

5. Standard IMF loans to assist a country in addressing its balance of payments problems are called                                                                        because the loans may or may not be used.

6. The amount of interest and repayment of principal that a borrower must pay during a period of time is called                                                                                                        .

7. Debt restructuring can take two forms:

8. Which of the following is the most controversial proposed reform for the "international financial architecture"?

9.                                           trade is when a lender gives up resources (money) today in order to get more resources (amount loaned plus interest) in the future.

10. Hong Kong has a(n):

11. If a bank borrows money in a foreign currency and uses that money to make loans in its domestic currency, in addition to the financial risk involved, the bank also takes a(n)

                                                risk.

12. Which of the following contributed to the Asian crisis?