An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?

Related Mcqs:

1. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

2. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

3. When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists ?

   A. trade creation
   B. trade diversion
   C. dynamic welfare effects
   D. comprehensive welfare effects

4. A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?

   A. constant
   B. inelastic
   C. elastic
   D. Unitary elastic

5. Higher export demand __________ output and a higher MPZ __________ output?

   A. reduces, reduces
   B. reduces, increase
   C. increase, reduces
   D. increases, increases

6. Which of the following may constitute the International Monetary Fund’s conditionality for borrowing?

   I. government reducing budget deficts
   II. limiting credit creation and liberalizing trade
   III. achieving market-clearing price
   IV. restraining public sector employment and wage rates

   A. I and II only
   B. III and IV only
   C. I, II , III and IV
   D. None of these

7. Forests and rangelands support 30 million herds of livestock. How much amount this livestock contributes to Pakistan’s annual export earnings ?

   A. $500 million
   B. $350 million
   C. $400 million
   D. $300 million

8. What is called the difference in the value of a nation’s imports over exports or exports over imports ?

   A. Trade deficit
   B. Trade simples
   C. Both a & b
   D. Not a nor b

9. Mention an agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price ?

   A. Redemption
   B. Guarantee
   C. Repo
   D. Repurchase arrangements

10. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

    A. Px/Pm
    B. Pm/Px
    C. (Pm/Px)Qm
    D. (Px/Pm)Qx