How do private banks ensure the profitability of their loans to poor countries,
who might default on their repayments?
a) Banks receive compensation from the IMF for any default on international development loans. b) They compete with other banks in offering the lowest interest rates, thus spreading their risk widely.
c) The lower the chance of repayment, the higher the interest rate the bank will charge.
d) All of the above
C
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When President Eisenhower focused attention on the consequences of a vast military establishment linked to a huge arms industry, he was warning the United States about
A) unwarranted influence by the military-industrial complex. B) unwarranted influence by members of Congress in a historical preserve of the executive. C) not being vigilant enough to a probable attack from the USSR. D) being outmaneuvered in the world arms market by Japan and the EEC. E) unwarranted influence by foreign economists.
Which of the following statement is NOT true regarding party machines?
a. Party machines were strongest in rural areas. b. Party machines guaranteed people’s support through patronage. c. Party machines came under attack from reformers in the early 1900s. d. Party bosses had complete control over the nomination process. e. Party machines originated with the Jacksonian Democrats.