Economics MCQs

Page No. 341

Before the 1978 reforms China had a(n) ?


aagricultural bank only


b urban credit cooperatives


cmono bank system


dhousing savings banks


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


bBrazil and Argentina


cAlgeria and Yugoslavia


d Singapore and Malaysia



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


bdevaluing local currencies


cincrease trade restrictions by imposing quota


dincrease government spending



Internal balance refers to ?


afull employment and price stability


bexports minus imports


cmonetary policy offsetting fiscal policy


dexports equal to imports



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


acontributes to low-income countries recovery quickly


breduces basis-needs attainment


cmay lead to the downfall of governments


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


b limiting credit creation and liberalizing trade


cachieving market-clearing price


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


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.


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



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


aReal interest rates rise and investment falls


bReal interest rates rise and investment rises


cReal interest rates fall and investment rises


d Real interest rates fall and investment falls



An increase in the budget deficit is ?


aan increase in public saving


b a decrease in private saving


c None of these answers


d a decrease in public savings



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


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


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



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