A ___________ occurs when a country cannot service its foreign debt obligations.
A) banking crisis
B) currency crisis
C) monetary crisis
D) foreign debt crisis
E) liquidity crisis

Question

Quizplus · Accepted Answer

A foreign debt crisis occurs when a country is unable to meet its foreign debt obligations, which means it is unable to pay back the loans it has taken from foreign entities. This can lead to a default on the debt or a restructuring of the debt agreement. It can have significant economic consequences for the country, including a decrease in foreign investment, a decrease in the value of the country's currency, and a decrease in the country's credit rating.

A ___________ Occurs When a Country Cannot Service Its Foreign