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Why Are There Conflicts of Interest Involved in International Finance

Question 4

Multiple Choice

Why are there conflicts of interest involved in international finance?


A) Borrowing countries frequently refuse to pay their debts.
B) A flood of international capital reduces the domestic savings rate.
C) Borrowers and lenders disagree over how the benefits from loans and investments should be divided.
D) The International Monetary Fund is reluctant to manage the problems of heavily indebted countries.

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