The chaebols encouraged the Korean government to open up Korean financial markets to foreign capital. The Korean government responded by
A)allowing unlimited short-term foreign borrowing but maintained quantity restrictions on long-term foreign borrowing by financial institutions.
B)allowing unlimited short-term and long-term foreign borrowing by financial institutions.
C)maintaining quantity restrictions on short-term foreign borrowing but allowing unlimited long-term foreign borrowing by financial institutions.
D)not allowing any foreign borrowing by financial institutions.

Question

Quizplus · Accepted Answer

The Korean government allowed unlimited short-term foreign borrowing to encourage capital inflow and stimulate economic growth, but it maintained quantity restrictions on long-term foreign borrowing by financial institutions to control the impact on the domestic financial market and manage external debt levels.

The Chaebols Encouraged the Korean Government to Open Up Korean