Which of the following is Not true about external debt ?
Correct answer: C. In the 19901s LDCs relied increasingly on aid from DCs
- A. External debt accumulates with international balance on goods services and income deficcits
- B. When debts are denominated in U.S dollars their appreciation during the 1990s increased the cost of servicing such debts
- C. In the 19901s LDCs relied increasingly on aid from DCs
- D. International lenders required LDC governments to guarantee private debt
Explanation
During the 1990s, developing countries generally faced declining aid dependence and increasingly relied on private capital and commercial financing rather than greater aid from developed countries. The other statements describe recognized features of external debt accumulation and servicing.
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