To restructure a developing world country's debt,the International Monetary Fund (IMF)typically wants "structural adjustment" in that country.What does this term mean?
A) completely exchanging the domestic currency for U.S. dollars, Euros, or Japanese Yen
B) a renewed focus on agriculture and limiting the size of cities
C) increases in government spending on health care, education, and care for the elderly
D) reductions in government subsidies to the poor and devaluations of currencies
E) mandating the total turnover of domestic banking to banks in the developed world, which often means a complete loss of savings for citizens of that country

Question

Quizplus · Accepted Answer

"Structural adjustment" refers to economic policies and reforms that aim to improve a country's economic efficiency and promote sustainable growth by reducing government spending, deregulating markets, and promoting exports. This often involves reducing subsidies to the poor, cutting government spending on social services, and devaluing the currency to make exports more competitive. The IMF typically requires these types of reforms as a condition for restructuring a developing country's debt. Choices A, B, C, and E are not accurate descriptions of structural adjustment policies.

To Restructure a Developing World Country's Debt,the International Monetary Fund