M C Q s D r i v e

Economics Mcqs 4423 MCQs [All-Courses]

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Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

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
Correct Answer: impractical for the IMF to loan short term as reforms can only be effective in the middle to long run
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
Correct Answer: sectoral adjustment loans
Which of the following factors potentially increased the vulnerability to the 1997 Asian financial and currency crisis ?
A trade account surplus
B massive reverse outflows of capital
C technological transfer from DCs
D Symmetric informational in financial market
Correct Answer: massive reverse outflows of capital
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
Correct Answer: net international resource flows minus net international interest payments and profit remittances
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)
Correct Answer: Singapore (1994)
Which of the following country did not experience large capital flights from 1976 to 1984 ?
A Argentina
B Venezuela
C Mexico
D Canada
Correct Answer: Canada
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
Correct Answer: new loans from multilateral agencies and surplus countries; debt reduction or write-downs
Which of the following statement is Not true ?
A The ratio of debt service to GNP is very good indicator of the debt burden
B Many large LDC debtors borrowed heavily because of their excellent international credit ratings
C Middle income countries account for almost four-fifths of the total outstanding debt of all LDCs
D The debt-burden of sub Saharan African countries may be as heavy as for middle income countries
Correct Answer: The ratio of debt service to GNP is very good indicator of the debt burden
Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were known as ?
A Structural adjustment loans
B sectoral adjustment loans
C internal adjustment loans
D external leverage loans
Correct Answer: sectoral adjustment loans
Which of the following country was not a major LDC debtor in 2001 ?
A Brazil
B Argentina
C Thailand
D Malaysia
Correct Answer: Malaysia