Practice - External Debt
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is external debt?
💡 Hint: Remember it involves borrowing from outside the country.
Name the two classifications of external debt.
💡 Hint: Think about repayment timeframes.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is one primary reason governments borrow externally?
💡 Hint: Think about what happens when a country needs more money.
True or False: External debt can only be negative for a country's economy.
💡 Hint: Consider the balance of opportunities and risks.
1 more question available
Challenge Problems
Push your limits with advanced challenges
As a financial advisor, how would you recommend a government handle a situation where external debt is significantly rising? What strategies can they employ?
💡 Hint: Consider both increasing income and managing current spending.
Evaluate the impact of a sudden depreciation of local currency on a government’s external debt obligations.
💡 Hint: Think about how currency exchange rates affect financial obligations.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.