Control of the future supply of funds available to a foreign country is one method to ensure the repayment of an existing debt.

Question

Quizplus · Accepted Answer

By controlling the future supply of funds available to a foreign country, a creditor can ensure that the debtor has the necessary resources to make repayments on an existing debt. This could involve conditions such as stipulating the amount and frequency of loan disbursements, requiring the implementation of economic reforms, or imposing trade restrictions. Such measures can help reduce the risk of default and ensure that the creditor's investment is protected.

Control of the Future Supply of Funds Available to a Foreign