Question 1

A typical IMF stabilization package involves

Accepted Answer

A) erecting barriers against foreign investment. 
B) overvaluing the exchange rate. 
C) liberalization of exchange controls. 
D) a reduction in interest rates. 
E) all of the above. 
A) erecting barriers against foreign investment. 
B) overvaluing the exchange rate. 
C) liberalization of exchange controls. 
D) a reduction in interest rates. 
E) all of the above.

Question 2

Exchange of developing country debt (at a discount)for private ownership of state-ownedassets is called

Accepted Answer

A) debt-equity swaps. 
B) debt restructuring. 
C) the Brady Plan. 
D) debt-nature swaps. 
A) debt-equity swaps. 
B) debt restructuring. 
C) the Brady Plan. 
D) debt-nature swaps.

Question 3

Discuss some of the reasons why economists are concerned about the current recovery from the global financial crisis.

Accepted Answer

Large trade deficit.Large fiscal deficit

Question 4

Why may the debt crisis be only "sleeping" rather than "dead?"

Accepted Answer

Debt restructuring has postponed but not

Question 5

Which of the following was not a factor contributing to the debt crisis in Latin America?

Accepted Answer

A) The oil shocks. 
B) Trade liberalization in many developing countries. 
C) An increase in global interest rates. 
D) A lack of investment opportunities in the developed countries. 
E) All of the above. 
A) The oil shocks. 
B) Trade liberalization in many developing countries. 
C) An increase in global interest rates. 
D) A lack of investment opportunities in the developed countries. 
E) All of the above.

Question 6

A significant problem of a dual exchange rate system is that it

Accepted Answer

A) is difficult to administer. 
B) leads companies to pursue rent-seeking behavior. 
C) promotes black markets. 
D) all of the above. 
E) none of the above. 
A) is difficult to administer. 
B) leads companies to pursue rent-seeking behavior. 
C) promotes black markets. 
D) all of the above. 
E) none of the above.

Question 7

The concept of odious debt implies

Accepted Answer

A) an excessive debt. 
B) a debt that is not the responsibility of the nation's people. 
C) a large debt burden. 
D) the total external debt of a nation's people. 
A) an excessive debt. 
B) a debt that is not the responsibility of the nation's people. 
C) a large debt burden. 
D) the total external debt of a nation's people.

Question 8

What is meant by the term Odious Debt"?

Accepted Answer

Discussed in Box 13.

Question 9

Consider debt-equity swaps as an approach to debt reduction.Briefly describe how this works.State two arguments in favor of significant reliance on this strategy and two arguments against.

Accepted Answer

In favor:may help restore a healthy bala

Question 10

An IMF official was quoted as acknowledging that the Fund's stabilization packages have often led to adjustment without growth.However,he said,"the Fund is a firefighter not a carpenter,and you cannot expect the firefighter to rebuild the house as well as put out the fire." Provide a balanced evaluation of this statement.

Accepted Answer

Suggestion:Nothing s

A typical IMF stabilization package involves

Exchange of developing country debt (at a discount)for private ownership of state-ownedassets is called

Discuss some of the reasons why economists are concerned about the current recovery from the global financial crisis.

Why may the debt crisis be only "sleeping" rather than "dead?"

Which of the following was not a factor contributing to the debt crisis in Latin America?

A significant problem of a dual exchange rate system is that it

The concept of odious debt implies

What is meant by the term Odious Debt"?

Consider debt-equity swaps as an approach to debt reduction.Briefly describe how this works.State two arguments in favor of significant reliance on this strategy and two arguments against.

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Poverty,inequality,and Development

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

International Trade Theory and Development Strategy

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Finance and Fiscal Policy for Development

Filters

Exam 13: Balance of Payments,debt,financial Crises,and Stabilization Policies

A typical IMF stabilization package involves

Exchange of developing country debt (at a discount)for private ownership of state-ownedassets is called

Discuss some of the reasons why economists are concerned about the current recovery from the global financial crisis.

Why may the debt crisis be only "sleeping" rather than "dead?"

Which of the following was not a factor contributing to the debt crisis in Latin America?

A significant problem of a dual exchange rate system is that it

The concept of odious debt implies

What is meant by the term Odious Debt"?

Consider debt-equity swaps as an approach to debt reduction.Briefly describe how this works.State two arguments in favor of significant reliance on this strategy and two arguments against.

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Poverty,inequality,and Development

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

International Trade Theory and Development Strategy

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Finance and Fiscal Policy for Development

Filters