The IMF is an agency charged with providing ?

A. technical assistance to stock market and financial market problems
B. loans for post-World War II reconstruction
C. short-term credit for international balance of payments deficits
D. bonds denominated in U.S dollars as a loan to LDCs

Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ?

I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers
II- Hamper local entrepreneurship and investment in infant industries
III- increase unemployment rates from unsuitable technology
IV- Restrict subsidiary exports when they undercut the market of the parent company

A. I and II only
B. III and IV only
C. I, II and III only
D. I, II, III and IV

For Harvard’s Dani Rodrik Globalization involves ?

A. decreasing autonomy of the nation-state involves
B. the increasing international integration of markets for goods services and capital
C. changes of a traditional culture of a country to a western culture
D. giving aid to poor countries to improve their economy politics and social status

Japan’s programs ?

I- are understaffed politically muddled and administratively complex
II- are biased toward Asia
III- go primarily to less developed countries in Africa
IV- focus on loans and the grant element of aid is low

A. I, II and III
B. I, II and IV
C. II, III and IV
D. I, II, III and IV

Aid or official development assistance (ODA) includes ?

I- developments grants
II- loans with at least 25 percent grant element
III- military assistance
IV- technical cooperation

A. I and II only
B. I, II and III only
C. I, II and IV only
D. I, II, III and IV only

The balance on current account ?

I- equals the absolute value of the balance on capital account
II- is financed by savings
III- is net grants minus remittances
IV- includes goods services and unilateral transfers

A. I and II only
B. II and III only
C. I and IV only
D. None of the above

Barro and Lee find that ceteris paribus, IMF lending has ?

A. negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years
B. no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
C. a significantly positive effect on growth in the subsequent five years
D. an exponentially negative effect on growth ten years

scroll to top