Question 1

How would you define a currency board?

Accepted Answer

A)  the process by which non-pegged interest rates are allowed to fluctuate 
B)  the stockpiling of international reserves by developing countries 
C)  using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone 
D)  a constraint placed on monetary policy 
E)  The monetary base is backed entirely by foreign currency and the central bank holds no domestic assets. 
A)  the process by which non-pegged interest rates are allowed to fluctuate 
B)  the stockpiling of international reserves by developing countries 
C)  using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone 
D)  a constraint placed on monetary policy 
E)  The monetary base is backed entirely by foreign currency and the central bank holds no domestic assets.

Question 2

Which of the following is a reason that developing countries are running large surpluses?

Accepted Answer

A)  They are required to do so by IMF. 
B)  They have defaulted on international loans. 
C)  They have pegged exchange rates and thus the growth of exports must drive surplus up. 
D)  They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows. 
E)  They don't know how to manage their surpluses. 
A)  They are required to do so by IMF. 
B)  They have defaulted on international loans. 
C)  They have pegged exchange rates and thus the growth of exports must drive surplus up. 
D)  They have a strong desire to accumulate international reserves to protect against a sudden stop of capital inflows. 
E)  They don't know how to manage their surpluses.

Question 3

What event started the Asian financial crisis in 1997?

Accepted Answer

A)  Indonesia's inability to pay its debts 
B)  devaluation of Indonesia's currency 
C)  Thailand's inability to pay its debts 
D)  devaluation of Thailand's currency 
E)  devaluation of Malaysia's currency 
A)  Indonesia's inability to pay its debts 
B)  devaluation of Indonesia's currency 
C)  Thailand's inability to pay its debts 
D)  devaluation of Thailand's currency 
E)  devaluation of Malaysia's currency

Question 4

In the instances where a loan has been issued under certain terms and has to be repaid, what happens when the borrower does not uphold these stipulations?

Accepted Answer

A)  call 
B)  option 
C)  payment 
D)  default 
E)  fraud 
A)  call 
B)  option 
C)  payment 
D)  default 
E)  fraud

Question 5

What factors lie behind capital inflows to the developing world?

Accepted Answer

Many developing countries have received

Question 6

"Sharp contractions in a country's output and employment invariably result from a crisis in which the country suddenly loses access to all foreign sources of funds." Explain how the current account identity necessitates these contractions.

Accepted Answer

S - I = CA (Current Account Identity)
Im

Question 7

Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry. These factors are

Accepted Answer

A)  capital and skilled labor. 
B)  capital and unskilled labor. 
C)  fertile land and unskilled labor. 
D)  fertile land and skilled labor. 
E)  water and capital. 
A)  capital and skilled labor. 
B)  capital and unskilled labor. 
C)  fertile land and unskilled labor. 
D)  fertile land and skilled labor. 
E)  water and capital.

Question 8

Which theory best explains the wealth inequalities amongst nations?

Accepted Answer

A)  weather 
B)  government institutions 
C)  natural selection 
D)  factors outside of any human control 
E)  levels of corruption 
A)  weather 
B)  government institutions 
C)  natural selection 
D)  factors outside of any human control 
E)  levels of corruption

Question 9

Describe some of the features hindering developing countries from growing faster.

Accepted Answer

One of the features that can be holding

Question 10

The relationship between annual real per-capita GDP and corruption across countries has been found to be

Accepted Answer

A)  negative. 
B)  positive. 
C)  The relationship was negative in the late 1960s but is now positive. 
D)  The relationship was in the late 1960s but is now negative. 
E)  There is no relationship between these two variables. 
A)  negative. 
B)  positive. 
C)  The relationship was negative in the late 1960s but is now positive. 
D)  The relationship was in the late 1960s but is now negative. 
E)  There is no relationship between these two variables.

Question 11

The 1980s are considered as the "lost decade" of Latin American growth. Explain why?

Accepted Answer

Just as the Great Depression made it har

Question 12

Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong; dollarization, Argentina.

Accepted Answer

An open question. St

How would you define a currency board?

Which of the following is a reason that developing countries are running large surpluses?

What event started the Asian financial crisis in 1997?

In the instances where a loan has been issued under certain terms and has to be repaid, what happens when the borrower does not uphold these stipulations?

What factors lie behind capital inflows to the developing world?

"Sharp contractions in a country's output and employment invariably result from a crisis in which the country suddenly loses access to all foreign sources of funds." Explain how the current account identity necessitates these contractions.

Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry. These factors are

Which theory best explains the wealth inequalities amongst nations?

Describe some of the features hindering developing countries from growing faster.

The relationship between annual real per-capita GDP and corruption across countries has been found to be

The 1980s are considered as the "lost decade" of Latin American growth. Explain why?

Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong; dollarization, Argentina.

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Filters

Exam 22: Developing Countries: Growth, Crisis, and Reform

How would you define a currency board?

Which of the following is a reason that developing countries are running large surpluses?

What event started the Asian financial crisis in 1997?

In the instances where a loan has been issued under certain terms and has to be repaid, what happens when the borrower does not uphold these stipulations?

What factors lie behind capital inflows to the developing world?

"Sharp contractions in a country's output and employment invariably result from a crisis in which the country suddenly loses access to all foreign sources of funds." Explain how the current account identity necessitates these contractions.

Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry. These factors are

Which theory best explains the wealth inequalities amongst nations?

Describe some of the features hindering developing countries from growing faster.

The relationship between annual real per-capita GDP and corruption across countries has been found to be

The 1980s are considered as the "lost decade" of Latin American growth. Explain why?

Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong; dollarization, Argentina.

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Filters