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Short questions


Question 1

Explain what is meant by the debt service ratio.

Question 2

Explain' vulture funds' and outline the problems they can create for indebted nations.

Question 3

Explain how the concept of opportunity cost is relevant when considering the servicing of the debts of less developed countries.

Question 4

Explain why less developed countries need to borrow from foreign creditors rather than from domestic creditors.

Question 5

Define the term 'debt swap'.