The role of _______ is to direct one nation’s savings into investments of another nation?

Related Mcqs:

1. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. increase in the money demand
   B. decrease in the money demand
   C. increase in the money demand
   D. None of the above

2. If a nation has an open economy it means that the nation ?

   A. Allows private ownership of capital
   B. Has flexible exchange rates
   C. Has fixed exchange rates
   D. conducts trade with other countries

3. If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?

   A. The price of autos within the nation will rise by 10 percent
   B. The price of autos within the nation will rise by less than 10 percent
   C. The price of autos within the nation will rise by more than 10 percent
   D. The price of autos will not rise because of internal competition

4. If a nation fitting the criteria for the large nation model imposes an import tariff ?

   A. the domestic price of the product will increase by more than the tariff itself
   B. The domestic price of the product will increase by the same amount as the tariff
   C. The domestic price of the product will increase by less than the tariff
   D. None of the above

5. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. decrease in the money supply
   B. increase in the money supply
   C. decrease in the money demand
   D. None of the above

6. S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?

   A. S – I = X = M
   B. S + I = X + M
   C. S = I – (X+M)
   D. S-I = X/M

7. Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?

   A. Rs30,000
   B. Rs35,000
   C. Rs75,000
   D. Rs70,000

8. Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?

   A. Rs80,000
   B. Rs30,000
   C. Rs75,000
   D. Rs70,000

9. A company or corporation which was subsidiaries, investments or operation in more than one country is known as ?

   A. Multinational corporation
   B. Multinational company
   C. Both of them
   D. None of them

10. In the 1980s economists studying the source of growth observed no positive relationship between information and communications technology (ICT) investments and productivity This is known as ?

    A. Solow residual
    B. productivity paradox
    C. technological followership
    D. Stieglitz discrepancies