15-12 Sometimes banks received criticism because domestic governments take special political steps to reduce the probability that foreign borrowers will default or repudiate their debt contracts,an occurrence that could cause financial harm to the domestic banks.

Question

Quizplus · Accepted Answer

This statement is true. Domestic governments may take political steps to protect their domestic banks from financial harm caused by foreign borrowers defaulting or repudiating their debt contracts.

15-12 Sometimes Banks Received Criticism Because Domestic Governments Take Special