Economics MCQs

Page No. 341

Before the 1978 reforms China had a(n) ?


aagricultural bank only

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b urban credit cooperatives

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cmono bank system

✓


dhousing savings banks

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View Answer mono bank system

Countries such as ________ that failed to adjust to a persistent external disequilibrium were more vulnerable to poverty displacement and even war ?


aJapan and Korea

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bBrazil and Argentina

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cAlgeria and Yugoslavia

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d Singapore and Malaysia

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When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?


a switching spending from domestic to foreign sources

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bdevaluing local currencies

✓


cincrease trade restrictions by imposing quota

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dincrease government spending

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Internal balance refers to ?


afull employment and price stability

✓


bexports minus imports

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cmonetary policy offsetting fiscal policy

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dexports equal to imports

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According to the Brandt report the IMF’s insistence on drastic measures in short time periods ?


acontributes to low-income countries recovery quickly

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breduces basis-needs attainment

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cmay lead to the downfall of governments

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da ,b and c

✓


View Answer a ,b and c

Which of the following may constitute the International Monetary Fund’s conditionality for borrowing?


agovernment reducing budget deficts

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b limiting credit creation and liberalizing trade

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cachieving market-clearing price

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da ,b and c

✓


View Answer a ,b and c

An increase in the budget surplus ?


aShifts the supply of loanable funds to the left and increase the real interest rateShifts the supply of loanable funds to the left and increase the real interest rate

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bShift the supply of loanable funds to the right and reduces the real interest rate.

✓


cShifts the demand for loanable funds to the right and increases the real interest rate.

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dShifts the demand for loanable funds to the left and reduces the real interest rate

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If Pakistani citizens become less concerned with the future and save less at each real interest rate ?


aReal interest rates rise and investment falls

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bReal interest rates rise and investment rises

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cReal interest rates fall and investment rises

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d Real interest rates fall and investment falls

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An increase in the budget deficit is ?


aan increase in public saving

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b a decrease in private saving

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c None of these answers

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d a decrease in public savings

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An increase in the budget deficit will ?


araise the real interest rate and decrease the quantity of loanable funds demanded for investment

✓


b lower the real interest rate and increase the quantity of loaable funds demanded for investment

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craise the real interest rate and increase the quantity of loandable funds demanded for investment

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dlower the real interest rate and decrease the quantity of loanable funds demanded for investment

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