Which of the following is an obstacle poor countries face in seeking development finance funds from foreign savers?
A) Governments of many rich countries impose restrictions on capital flows to poor countries.
B) Many poor countries impose restrictions on the inflow of foreign funds.
C) The difficulty of repaying loans denominated in foreign currency.
D) The difficulty of taxing the interest income earned by foreigners on loans to poor countries.

Question

Quizplus · Accepted Answer

Poor countries often face challenges in repaying loans that are denominated in foreign currencies due to exchange rate fluctuations and the potential for their own currency to depreciate, which can increase the real burden of the debt.

Which of the Following Is an Obstacle Poor Countries Face