At the time of the South Korean financial crisis, the merchant banks were

At the time of the South Korean financial crisis, the merchant banks were

A) almost virtually unregulated.
B) subject to heavy government regulation.
C) engaged in long-term lending to the corporate sector.
D) restricted to long-term foreign borrowing.

Answer: A

At the time of the South Korean financial crisis, the government allowed many chaebol owned finance companies to convert to merchant banks. Finance companies ________ allowed to borrow abroad and merchant banks ________.

At the time of the South Korean financial crisis, the government allowed many chaebol owned finance companies to convert to merchant banks. Finance companies ________ allowed to borrow abroad and merchant banks ________.

A) were not; could borrow abroad
B) were not; could not borrow abroad
C) were; could borrow abroad
D) were; could not borrow abroad

Answer: A

The chaebols encouraged the Korean government to open up Korean financial markets to foreign capital. The Korean government responded by

The chaebols encouraged the Korean government to open up Korean financial markets to foreign capital. The Korean government responded by 

A) allowing unlimited short-term foreign borrowing but maintained quantity restrictions on long-term foreign borrowing by financial institutions.
B) allowing unlimited short-term and long-term foreign borrowing by financial institutions.
C) maintaining quantity restrictions on short-term foreign borrowing but allowing unlimited long-term foreign borrowing by financial institutions.
D) not allowing any foreign borrowing by financial institutions.

Answer: A

Before the South Korean financial crisis, sales by the top five chaebols (family-owned conglomerates) were

Before the South Korean financial crisis, sales by the top five chaebols (family-owned conglomerates) were 

A) nearly 50% of GDP.
B) about 10% of GDP.
C) almost 90% of GDP.
D) nearly 25% of GDP.

Answer: A