Economics Mcqs

Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines and Korea in 1997 indicate that ?

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Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philipes and Korea in 1997 indicate that ?

i. capital inflows/GDP were very low
ii. Nonperforming bank loan ratios were high
iii. current account deficits were high
iv. credit growth was fast
A. I and IV only
B. II and III only
C. I, II and III only
D. II, III and IV only

The debt-service ratio is the______________?

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The debt-service ratio is the______________?

A. long-term debt divided by GDP of a country in a given year
B. interest and principle payments divided by exports of goods and services
C. ratio of debt net of portfolio investment financing and foreign direct investment
D. default and reschedule debt minus annual export revenues that must be devoted to paying interest

Which of the following is Not true about external debt ?

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Which of the following is Not true about external debt ?

A. External debt accumulates with international balance on goods services and income deficcits
B. When debts are denominated in U.S dollars their appreciation during the 1990s increased the cost of servicing such debts
C. In the 19901s LDCs relied increasingly on aid from DCs
D. International lenders required LDC governments to guarantee private debt

In 1990, during the Persian Gulf War, the U.S government extended generous terms to two middle-income countries by canceling or reducing their debt The two countries were ?

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In 1990, during the Persian Gulf War, the U.S government extended generous terms to two middle-income countries by canceling or reducing their debt The two countries were ?

A. Iraq and Iran
B. Egypt and Poland
C. Pakistan and Afghanistan
D. Saudi Arabia and Jordan

Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?

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Fundamentalists want the IMF to lend to crisis-stricken countries on condition that they undertake fundamental structural reforms in banking Joseph Stiglitz however thinks it is______________?

A. unrealistic for IMF to intervene in the financial markets of poor countries during the crisis
B. impractical for the IMF to loan short term as reforms can only be effective in the middle to long run
C. crucial that the IMF intervene in the reform of fiscal policy of the country and not the monetary policy
D. None of the statements above is correct