When a country no longer is willing or able to make the scheduled payments on its borrowed capital, this often develops into what is known as a
A) lender of last resort condition.
B) debt crisis.
C) fluctuating condition in the national currency.
D) decline in global capital mobility.

Question

Quizplus · Accepted Answer

When a country is unable to make the scheduled payments on its borrowed capital, it is referred to as a debt crisis. This can lead to various economic issues such as inflation, currency devaluation, and a decline in investor confidence.

When a Country No Longer Is Willing or Able to Make