Which of the following is a major benefit of international lending?
A)It allows improvements in the current account balances of the borrowing nations.
B)It requires reducing restrictive trade practices in the lending and the borrowing countries.
C)It allows countries to reduce taxes in the domestic market.
D)It allows lenders and investors to diversify their investments more broadly.

Question

Quizplus · Accepted Answer

International lending allows lenders and investors to diversify their investments more broadly, which can contribute to reducing portfolio risk and increasing potential returns. It also facilitates the flow of capital to regions where resources are scarce and to industries that require large amounts of capital investment. The other options listed are not major benefits of international lending.

Which of the Following Is a Major Benefit of International