* not completed

. Banking originated in ________ before 2000 BCE.

a) Babylonia correct incorrect

b) Rome correct incorrect

c) Egypt correct incorrect

d) Ancient Greece correct incorrect

e) China correct incorrect

* not completed

. Odious debt is defined as ________.

a) debt that is incurred illegitimately correct incorrect

b) a loan to a dictatorship or despotic regime correct incorrect

c) debt accompanied by excessive interest rates correct incorrect

d) debt that can never be paid off correct incorrect

e) illegitimate debt correct incorrect

* not completed

. Real interest rate is defined as ________.

a) the abstract rate of interest correct incorrect

b) the rate of interest, less the rate inflation correct incorrect

c) the rate of interest charged, taking into account the unemployment rate correct incorrect

d) the rate of interest charged, plus the exchange rate of the currency in which the loan is denominated correct incorrect

e) a predetermined interest rate correct incorrect

* not completed

. The purpose of the Heavily Indebted Poor Countries (HIPC) Initiative in 1996 was to ________.

a) cancel unconditionally the debts of the poorest countries correct incorrect

b) encourage debt repayment by reducing interests rates on future loans to extremely poor countries correct incorrect

c) provide subsidized food and manufactured goods to the poorest countries correct incorrect

d) cancel some of the debts of the poorest countries if they implemented structural adjustment programs correct incorrect

e) cancel all odious debt correct incorrect

* not completed

. John Perkins, author of Confessions of an Economic Hit Man (2004), claims that he was paid to ________ when working for an international consulting firm with ties to the US National Security Agency.

a) vastly underestimate growth rates correct incorrect

b) engage in industrial espionage correct incorrect

c) engage in destabilizing stock market investment correct incorrect

d) produce hugely exaggerated economic forecasts correct incorrect

e) discourage lending to Southern countries correct incorrect

* not completed

. The essential difference between the crises of the 1930s and the later crisis of the 1980s was the existence of ________.

a) the Bretton Woods Institutions correct incorrect

b) lender conditionality correct incorrect

c) unlimited interest rates correct incorrect

d) foreign exchange reserves correct incorrect

e) multinational corporations correct incorrect

* not completed

. Excessive interest rates are called ________.

a) quantitative easing correct incorrect

b) odious interest correct incorrect

c) principal correct incorrect

d) usury correct incorrect

e) capitalist interest correct incorrect

* not completed

. In 1982, ________ became the first developing country to default on its debt obligations, sparking the debt crisis and subsequent structural adjustment programs.

a) Argentina correct incorrect

b) Indonesia correct incorrect

c) Mexico correct incorrect

d) Turkey correct incorrect

e) Egypt correct incorrect

* not completed

. According to economist Cheryl Payer, foreign loans ________.

a) have been instrumental in most successful development projects correct incorrect

b) rarely lead to successful development correct incorrect

c) are often illegitimate correct incorrect

d) are undersupplied correct incorrect

e) are rarely repaid correct incorrect

* not completed

. The Jubilee Debt Campaign in 2015 said that it regarded three-quarters of the developing-country debt still owed to the ________ government as "illegitimate."

a) Russian correct incorrect

b) Canadian correct incorrect

c) Mexican correct incorrect

d) UK correct incorrect

e) US correct incorrect

* not completed

. ________ was the first creditor country to announce that illegitimate debt must be cancelled.

a) Finland correct incorrect

b) Norway correct incorrect

c) The United States correct incorrect

d) France correct incorrect

e) Germany correct incorrect

* not completed

. ________ occurs when banks and lending agencies are desperate to lend money that they encourage foreign governments to take loans they do not need.

a) Loan pushing correct incorrect

b) Usury borrowing correct incorrect

c) Investment selling correct incorrect

d) Rapid loaning correct incorrect

e) High-risk foreign loaning correct incorrect

* not completed

. The past 250 years have seen all the following economic cycles, EXCEPT for: ________.

a) Growth 1780-1820; mania 1820s; crisis 1830s and 1840s correct incorrect

b) Growth 1850s; mania 1860s; crisis 1870s and 1880s correct incorrect

c) Growth 1893-1913; mania 1920s; crisis 1930s correct incorrect

d) Growth 1948-67; mania 1967-79; crises in early 1980s correct incorrect

e) Growth 1990-2005; has not been followed with a new mania correct incorrect

* not completed

. The end of World War II brought about major changes in global politics and economics. The following was NOT one of these changes: ________.

a) Developing countries experienced a more relaxed life condition correct incorrect

b) Decolonization began, and many countries became independent correct incorrect

c) The Depression of the 1930s and then the war had made clear that new international institutions were needed correct incorrect

d) Major corporations began to arise correct incorrect

e) Nuclear weapons changed the nature of war and of empire correct incorrect

* not completed

. The Heavily Indebted Poor Countries (HIPC) Initiative sought to ensure that all loans would be successfully repaid.

a) True correct incorrect

b) False correct incorrect

* not completed

. Debt incurred from loans that should not have been made is referred to as "odious debt."

a) True correct incorrect

b) False correct incorrect

* not completed

. During the Cold War, numerous loans were made in order to prop up and tie client dictators to Western states.

a) True correct incorrect

b) False correct incorrect

* not completed

. Overall, the debts of developing countries increased in the 1970s.

a) True correct incorrect

b) False correct incorrect

* not completed

. In international law, it is widely accepted that when a government changes, the successor government assumes the laws, contracts, and debts of the previous government.

a) True correct incorrect

b) False correct incorrect

* not completed

. In 1945, Britain loaned $3.75 billion from the United States. Britain finished repaying this loan in 1997.

a) True correct incorrect

b) False correct incorrect

* not completed

. Increasingly, lenders take due care to see that a loan is reasonable, that the borrower is competent to borrow, and that the borrower can reasonably be expected to repay.

a) True correct incorrect

b) False correct incorrect

* not completed

. Usury has only recently become an issue in banking and financing.

a) True correct incorrect

b) False correct incorrect

* not completed

. In the growth period, lending can be profitable and promote productive investment and growth.

a) True correct incorrect

b) False correct incorrect

* not completed

. One way in which the US shifted the post-1979 economic crisis onto the South was through the raising of interest rates.

a) True correct incorrect

b) False correct incorrect

* not completed

. Until 1990, Eastern governments were the biggest lenders to Zaire.

a) True correct incorrect

b) False correct incorrect

* not completed

. A group of investment funds are called vulture funds.

a) True correct incorrect

b) False correct incorrect

* not completed

. Lender-borrower co-responsibilities, as well as odious and illegitimate lending, have not yet been recognized as concepts in international law.

a) True correct incorrect

b) False correct incorrect

* not completed

. At the heart of lending and borrowing relationships is power.

a) True correct incorrect

b) False correct incorrect

* not completed

. The state-led growth model of lending money in the 1930s Depression, which continued through the 1960s and 1970s, led to improving the conditions of poorer people.

a) True correct incorrect

b) False correct incorrect