Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Get quick and reliable solutions to your questions from a community of experienced professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its domestic currency.

a. True
b. False

Sagot :

Parrain

Answer: False

Explanation:

A sudden stop refers to the sudden decline in net capital inflows in the economy from outside. This is a significant method by which the economy can have access to foreign exchange.

If the country therefore borrows internationally in foreign currencies whilst lending in domestic currency, the sudden stop will be difficult to navigate because it will impair the country's ability to pay off the international creditors it has because it will not have enough of the required foreign currency to pay them.

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.