Economics Mcqs
A country that is a net international debtor initially experiences a (an) ?

A. Larger savings pool available to finance domestic spending
B. Higher interest rate which leads to lower domestic investment
C. Loss of funds to trading partners overseas
D. Decrease in its services exports to other countries

Which of the following is Not true about external debt ?

A. External debt accumulates with international balance on goods services and income deficcits
B. When debts are denominated in u.s dollars their appreciation during the 1990s increased the cost of servicing such debts
C. In the 19901s ldcs relied increasingly on aid from dcs
D. International lenders required ldc governments to guarantee private debt

Which of the following is will NOT reduce capital flight from source countries ?

A. Dependable positive real interest rates
B. Higher taxes on capital gains
C. More efficient state enterprises
D. Market liberalization

The debt-service ratio is the______________?

A. Long-term debt divided by gdp of a country in a given year
B. Interest and principle payments divided by exports of goods and services
C. Ratio of debt net of portfolio investment financing and foreign direct investment
D. Default and reschedule debt minus annual export revenues that must be devoted to paying interest

Which of the following country was not a major LDC debtor in 2001 ?

A. Brazil
B. Argentina
C. Thailand
D. Malaysia

Highly-indebted poor countries (HIPCs) include________________?

I- Bolivia
Ii- benin
Iii- uganda
Iv- tanzania

Net transfers are______________?

A. Investment loans, and grants from overseas minus international resource outflows
B. Net international resource flows minus net international interest payments and profit remittances
C. International resource outflows minus international balance of payments and profit remittances
D. Foreign direct investment inflow minus investment loans and grants from overseas