Business

Which of the following is an implication of a currency crisis? A. It

QUESTION Which of the following is an implication of a currency crisis? A. It occurs due to a sharp appreciation in the value of a currency. B. It forces authorities to block large volumes of international currency reserves. C. A country in currency crisis is not eligible for loans from the International Monetary Fund. D. […]

Read full post

Date: September 3rd, 2020

Which of the following is true of a banking crisis? A. It leads to in

QUESTION Which of the following is true of a banking crisis? A. It leads to individuals and companies withdrawing their deposits from banks. B. It results in a sharp appreciation in the value of the currency. C. It happens due to a decline in domestic borrowing. D. It occurs due to asset price deflation. E. […]

Read full post

Date: September 3rd, 2020

According to the agreement reached between the International Monetary

QUESTION According to the agreement reached between the International Monetary Fund and the South Korean government in 1997, in return for funding, the South Koreans were required to: A. adopt communist ideologies. B. reduce their imports by enforcing restrictive import licensing. C. open their economy to greater foreign competition. D. oppose the ideologies of the […]

Read full post

Date: September 3rd, 2020

In the context of the 1997 Asian crisis, how did the International Mon

QUESTION In the context of the 1997 Asian crisis, how did the International Monetary Fund’s “one-size-fits-all” approach to macroeconomic policy affect South Korea? A. It led to a decrease in the interest rates of short-term loans. B. It made it difficult for companies to service their excessive short-term debt obligations. C. It decreased the probability […]

Read full post

Date: September 3rd, 2020

All International Monetary Fund (IMF) loan packages come with conditio

QUESTION All International Monetary Fund (IMF) loan packages come with conditions attached. Which of the following is prevented due to these policies of the IMF? A. Trade liberalization B. Elimination of restrictive import licensing C. Excessive government spending and debt D. Privatization of state-owned assets E. Deregulation of the economy to increase competition   ANSWER […]

Read full post

Date: September 3rd, 2020

Most of the International Monetary Fund’s loan activities since the mi

QUESTION Most of the International Monetary Fund’s loan activities since the mid-1970s have been targeted toward developing nations typically because: A. developed nations are not willing to enact certain macroeconomic policies in return for money. B. developing nations are more than twice as likely to experience financial crises as developed nations. C. it does not […]

Read full post

Date: September 3rd, 2020

Critics of floating exchange rates claim that trade deficits are deter

QUESTION Critics of floating exchange rates claim that trade deficits are determined by the: A. balance between savings and investment in a country. B. external value of the currency of a country. C. exchange rates of other currencies. D. valuations made by International Monetary Fund and the World Bank. E. mechanism of competitive currency devaluation. […]

Read full post

Date: September 3rd, 2020

According to the critics of the International Monetary Fund (IMF), how

QUESTION According to the critics of the International Monetary Fund (IMF), how should the problem of moral hazard exhibited by banks be resolved? A. The IMF should use a “one-size-fits-all” approach to macroeconomic policy. B. The IMF should establish a mechanism for accountability. C. The IMF should free all banks from the obligation of financial […]

Read full post

Date: September 3rd, 2020