O-LevelEconomicsEconomic development2281/12 · May/June 2016 · Q251 Mark
Some people think that the debts and interest payments of the poorest countries in the world should be cancelled. What might be a disadvantage for the poorest countries if this were done?
AInternational banks might be less willing to give loans to poor countries.
BInterest payments to the lenders would fall.
CThe standard of living of people in the poorest countries would fall.
DTrade between the poorest countries and the rest of the world would increase.
✓ Correct answer
A: International banks might be less willing to give loans to poor countries.
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