FIN657

What was the primary trigger for the Greek Debt Crisis, and when did it begin?

• A sudden collapse of the banking sector in 2005.

• Greece's announcement in 2009 of significantly higher national debt and budget deficit figures than previously reported.

• A major natural disaster that devastated the country's infrastructure in 2011.

• The global financial crisis of 2008 directly leading to a default in 2008.

How did Greece's entry into the Eurozone contribute to its debt problems?

• It forced Greece to devalue its currency, making imports more expensive.

• It led to higher interest rates on loans, increasing the cost of borrowing.

• It made it easier and more affordable for Greece to take loans from investors who trusted the Eurozone, leading to increased borrowing.

• It imposed strict fiscal discipline, which Greece struggled to meet.

Which of the following was NOT a key internal cause of the Greek Debt Crisis, as discussed in the text?

• Excessive government spending on public worker salaries and pensions.

• Widespread tax evasion.

• A highly productive and competitive economy.

• A weak economic structure with an inefficient government sector.

What was the "Troika" in the context of the Greek Debt Crisis?

• A group of three private banks that lent money to Greece.

• The European Union (EU), European Central Bank (ECB), and International Monetary Fund (IMF).

• The three largest political parties in Greece.

• A committee formed to investigate tax evasion.

What was a severe economic impact of the Greek Debt Crisis on the country's population?

• A boom in manufacturing and exports due to increased foreign investment.

• A deep recession, high unemployment, and public anger due to austerity measures.

• Increased public services and higher wages for public workers.

• Stable economic growth and a balanced budget.

What was the central political controversy surrounding the 1MDB scandal in Malaysia?

• Disagreement over the national budget allocation for education.

• Allegations of electoral fraud during a general election.

• The misappropriation of billions of dollars from a sovereign wealth fund, allegedly involving the former Prime Minister.

• A dispute over trade policies with neighboring countries.

How did the 1MDB scandal affect Malaysia's public debt and international credibility?

• It led to a decrease in public debt due to successful investments.

• It significantly increased contingent liabilities and damaged investor confidence and international credibility.

• It had no significant impact on public debt or international standing.

• It attracted more foreign direct investment due to increased transparency.

What was one of the main reasons Greece's debt crisis escalated?

• They didn't have enough oil

• Overspending and misreporting financial data

• The country didn’t have a stable currency

• A global market crash

Which organization provided Greece with bailout loans during the debt crisis?

• United Nations (UN)

• International Monetary Fund (IMF)

• World Bank

• World Trade Organization (WTO)

What happened in Greece after they cut spending and raised taxes?

• The economy showed rapid growth and low unemployment

• Many people lost their jobs, and there were widespread protests

• The government was able to balance its budget without any problems