6 When a country borrows from the IMF Select one a it is fre

6. When a country borrows from the IMF

Select one:

a. it is free of conditions.

b. it receives funds in tranches, each dependent on the completion of reform targets.

c. it can be any amount that the country requests.

d. it receives all the funds from the loan at once.

7. Which of the following is NOT a problem with excessive debt?

Select one:

a. It worsens the central government\'s budget position by adding large debt service payments to other budget items.

b. If debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social needs are less likely to be addressed.

c. It reduces the quantity of resources available to invest in economic development.

d. It can reduce the chance of a crisis.

8. The European Union membership criteria includes all of the following except

Select one:

a. the country must follow market-based economics.

b. the country must participate in free trade with all of its goods and services.

c. the country must be a stable functioning democracy.

d. the country must formally adopt the EU-wide rules such as technical standards, environmental inspections, banking supervision, etc.

Solution

a) \"B\"

It receives the funds in the tranche, each dependent on the completion of the reform targets.  

b) \"D\"

It can reduce the chance of Crisis. it is not a problem created by excessive debts.

c) \"D\"

There is no such condition as a country adopting the EU wide rules as technical standards, environmental inspection, banking supervision, etc.