Austerity Measures Reading Answers

In this blog, we have provided the complete passage for Austerity Measures Reading Answers with explanation. This is of Note Completion type. As an IELTS aspirant this blog will help you to atempt these types of questions. We have also provided answers with explanation for your better understanding.

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Solution for Austerity Measures

We have given the Solution for Austerity Measures Reading Answers in the below table. Check your answers against the below table and correct your mistakes if any.

Answer Table

1. Creditors	4. Greek Program
2. Intergovernmental Organisation	5. The Asian Tigers
3. Lender

Austerity Measures IELTS Reading Practice Test - Exam Review

Find the Austerity Measures IELTS Reading Answers below. We have given the passage, questions and answers with explanation. Practising more reading answers helps you develop skills like reading, skimming, scanning, answering, etc.  

Passage 

Below we have given the passage for Austerity Measures. Read the passage thoroughly and answer the following questions. We have also given Austerity Measures Reading Answers with location. 

Answer the questions 1-5 based on the below passage.

Austerity Measures

A state takes actions for the purpose of paying back its creditors which are called austerity measures. These measures include slashing government hiking taxes and expenditure, and generally, it will be imposed on a country when its national deficit seems to be not sustainable. In these circumstances, banks likely lose their faith in the government's potential or willingness to repay existing debts and as a response, it refuses to carry over the current loans and asks excessive interest rates on new lending. Often, Governments turn to the International Monetary Fund (IMF), an intergovernmental organisation which functions as a lender of last resort. The typical reaction to this is that the IMF demands austerity measures so that the indebted country can reduce its budget deficit and be able to fulfill their loan obligations.

In 2010,, a wave of austerity across Europe has seen cuts and freezes to pensions, welfare and public sector salaries along with hikes to some taxes and excises. The Greek program tries to reduce the budget shortfall from 8.1 percent of GDP in 2010 to 2.6 percent of GDP in 2014  basically by freezing public sector incomes in that period and decreasing public sector allowances by 8%. In addition, VAT - the Greek sales tax - will be increased to 23 percent, and tax on tobacco, fuel, and alcohol is also increased. Compared to the current retirement age for men, the statutory retirement age for women is raised to 65. This sort of reform is not popular in Greece. Furthermore, the series of general strikes dented the economy.
IMF-imposed austerity measures have been charged for motivating the deep recession following the Asian financial crisis of 1997. From the early 1990s, international investors from rich countries like Japan and the United States invested large amounts of money into SouthEast Asia, in order to make some quick returns and the soaring economies of Thailand. The title “the Asian Tigers” earned by the Philippines, Malaysia and others. Nonetheless, when things are going bad, the foreign investors are frightened and retract their investments in masses decimating Asian currencies and it turns millions of employees out of work. The IMF’s job in the recovery was to impose austerity measures that kept interests high, simultaneously the wages and labour standards are driven down when workers are already suffering. According to one former IMF economist, the actions undertaken on a global scale caused the deaths of 6 million children every year. 

Questions 1 - 5
Complete the notes below.

Write NO MORE THAN THREE WORDS AND/ OR A NUMBER from the passage for each answer.

Austerity measures was taken by the state to pay back its 1._______
International Monetary Fund (IMF) is an 2.__________, which functions as a 3.______ of last resort
The 4.______ tries to reduce the budget shortfall from 8.1 percent of GDP in 2010 to 2.6 percent of GDP in 2014 
 Philippines, Malaysia and others earned a title called 5._______.
 

Answers for Austerity Measures With Explanations

Check out Austerity Measures Reading Answers With Explanations provided below. 

(Note: The text in italics mentions the location and referring lines written in the reading passage.)

1. Answer: Creditors
Explanation: A state takes actions for the purpose of paying back its creditors which are called austerity measures. 

2. Answer: Intergovernmental organisation

3. Answer: Lender
Explanation: Often, Governments turn to the International Monetary Fund (IMF), an intergovernmental organisation which functions as a lender of last resort.

4. Answer: Greek Program
Explanation: The Greek program tries to reduce the budget shortfall from 8.1 percent of GDP in 2010 to 2.6 percent of GDP in 2014  basically by freezing public sector incomes in that period and decreasing public sector allowances by 8%.

5. Answer: The Asian Tigers
Explanation: The title “the Asian Tigers” earned by the Philippines, Malaysia and others.

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