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.Management Sciences
Category: The External Debt and Financial Crises
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
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
Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were know as ?
A. Structural adjustment loans
B. sectoral adjustment loans
C. internal adjustment loans
D. external leverage loans
Net transfers are______________?
A. investment loans, and grants from overseas minus international resource outflows
B. net international resource flows minus net international interest payments and profit remittances
C. international resource outflows minus international balance of payments and profit remittances
D. foreign direct investment inflow minus investment loans and grants from overseas
Initial conditions in the year before the crisis in Thailand Indonesia Malaysia the Philippines 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
Which of the following country did Not suffer from increased poverty from debt and financial crises in the 1990s ?
A. Singapore (1994)
B. Mexico (1994)
C. Russia (1998)
D. Brazil (1998)
Which of the following country did not experience large capital flights from 1976 to 1984 ?
A. Argentina
B. Venezuela
C. Mexico
D. Canada
Highly-indebted poor countries (HIPCs) include________________?
I- Bolivia
II- Benin
III- Uganda
IV- Tanzania
A. I and II only
B. I, II , III only
C. I, III and IV only
D. I, II , III and IV
The Baker plan (1985) stressed _______ and the Brady Plan (1989) emphasized _______ respectively?
A. IMF decentralization; World Bank dissolution
B. new loans from multilateral agencies and surplus countries; debt reduction or write-downs
C. structural adjustment loans for LDCs experiencing unanticipated external shocks; renewed emphases on macroeconomic stabilization programs
D. debt relief for at leas three-fourths of the eligible HIPCs; shorter requirements for adjustment programs
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