Question 1

A capital inflow that results in more than a 10 percent ownership share in a entity is called:

Accepted Answer

A)  foreign direct investment. 
B)  financial instability. 
C)  a merger. 
D)  portfolio capital. 
A)  foreign direct investment. 
B)  financial instability. 
C)  a merger. 
D)  portfolio capital.

Question 2

Moral hazard occurs when a borrower engages in much riskier behavior after issuing a debt instrument.

Accepted Answer

A) True 
 B)False

Question 3

_________________ is the set of limitations on the range of allowable actions of the government of a country that is a recipient of IMF loans.

Accepted Answer

A)  Regulatory arbitrage 
B)  Capital market liberalization 
C)  Conditionality 
D)  Economic fundamentals 
A)  Regulatory arbitrage 
B)  Capital market liberalization 
C)  Conditionality 
D)  Economic fundamentals

Question 4

A concerted effort by financial market speculators to profit by selling a nation-s currency and forcing policymakers to abandon the foreign exchange regime is called structural moral hazard.

Accepted Answer

A) True 
 B)False

A capital inflow that results in more than a 10 percent ownership share in a entity is called:

Moral hazard occurs when a borrower engages in much riskier behavior after issuing a debt instrument.

_________________ is the set of limitations on the range of allowable actions of the government of a country that is a recipient of IMF loans.

A concerted effort by financial market speculators to profit by selling a nation-s currency and forcing policymakers to abandon the foreign exchange regime is called structural moral hazard.

Understanding the Global Economy

Comparative Advantage: How Nations Can Gain From International Trade

Sources of Comparative Advantage

Regulating International Trade: Trade Policies and Their Effects

Regionalism and Multilateralism

Balance of Payments and Foreign Exchange Markets

Exchange Rate Systems: Past to Present

The Power of Arbitrage: Purchasing Power and Interest Rate Parities

Global Money and Banking: Where Central Banks Fit Into the World Economy

Contemporary Global Economic Issues and Policies

Economic Development

Industrial Structure and Trade in the Global Economy: Businesses Without Borders

The Public Sector in the Global Economy

Filters

Exam 14: Dealing With Financial Crises: Does the World Need a New International Financial Architecture

A capital inflow that results in more than a 10 percent ownership share in a entity is called:

Moral hazard occurs when a borrower engages in much riskier behavior after issuing a debt instrument.

_________________ is the set of limitations on the range of allowable actions of the government of a country that is a recipient of IMF loans.

A concerted effort by financial market speculators to profit by selling a nation-s currency and forcing policymakers to abandon the foreign exchange regime is called structural moral hazard.

Understanding the Global Economy

Comparative Advantage: How Nations Can Gain From International Trade

Sources of Comparative Advantage

Regulating International Trade: Trade Policies and Their Effects

Regionalism and Multilateralism

Balance of Payments and Foreign Exchange Markets

Exchange Rate Systems: Past to Present

The Power of Arbitrage: Purchasing Power and Interest Rate Parities

Global Money and Banking: Where Central Banks Fit Into the World Economy

Contemporary Global Economic Issues and Policies

Economic Development

Industrial Structure and Trade in the Global Economy: Businesses Without Borders

The Public Sector in the Global Economy

Filters