Category: The External Debt and Financial Crises

Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?

A. unrealistic for IMF to intervene in the financial markets of poor countries during the crisis
B. impractical for the IMF to loan short term as reforms can only be effective in the middle to long run
C. crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy
D. None of the statements above is correct

Net transfers are______________?

A. investment loans, and grants from overseas minus international resource outflows
B. net international resource flows minus net international interest payments and profit remittances
C. international resource outflows minus international balance of payments and profit remittances
D. foreign direct investment inflow minus investment loans and grants from overseas

The Baker plan (1985) stressed _______ and the Brady Plan (1989) emphasized _______ respectively?

A. IMF decentralization; World Bank dissolution
B. new loans from multilateral agencies and surplus countries; debt reduction or write-downs
C. structural adjustment loans for LDCs experiencing unanticipated external shocks; renewed emphases on macroeconomic stabilization programs
D. debt relief for at leas three-fourths of the eligible HIPCs; shorter requirements for adjustment programs