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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is external debt?
💡 Hint: Remember it involves borrowing from outside the country.
Question 2
Easy
Name the two classifications of external debt.
💡 Hint: Think about repayment timeframes.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is one primary reason governments borrow externally?
- To maintain surpluses
- To fund projects when domestic revenue is insufficient
- To pay off internal debt
💡 Hint: Think about what happens when a country needs more money.
Question 2
True or False: External debt can only be negative for a country's economy.
- True
- False
💡 Hint: Consider the balance of opportunities and risks.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation