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.Management Sciences
Category: Macroeconomic Issues and Analysis
The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its ?
A. financial account on the balance of payments.
B. balance of payments
C. balance of payments on current account
D. capital account of the balance of payments
In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
A. a nominal exchange rate, floated
B. a real exchange rate, pegged
C. a purchasing power parity, pegged
D. a real exchange rate, floated
If interest rates rise then costs are likely to _______ and demand is likely to _________?
A. rise, fall
B. rise; rise
C. fall; fall
D. fall; rise
In a fixed exchange rate regime, the central the exchange rate ?
A. selling, increase
B. buying reduce
C. selling, reduce
D. buying increase
E. A and B
F. C and D
Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
A. crowds out imports
B. crowds out public consumption
C. crowds out exports
D. reduces the budget deficit
The price of one country’s currency in terms of another country’s currency is the ?
A. exchange rate
B. balance of trade
C. terms of trade
D. currency validation
If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
A. not be affected
B. appreciate
C. depreciate
D. fluctuate more than if interest rates were high
If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than if it were at peace
D. appreciate
Which does the government not control directly ?
A. Spending on health
B. Spending on defence
C. Firms investment decisions
D. Spending on education
The situation when a country imports more than it exports is ?
A. a recession
B. a trade surplus
C. a trade deficit
D. an expansion.
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