I = S + F The equation above states that a country can increase its new capital formation (or investment) through is ?

A. Own domestic savings and by inflows of capital from abroad
B. Stock market and fiscal policy
C. Savings from abroad and financial outflow
D. Savings and financial liberalization

An annual summary of country’s international economic and financial transactions is ?

A. The capital accounts
B. The international balance of payments statements
C. The long-term current account
D. The trade accounts

Hollis Chenery and Alan Strout identity three development stages in which growth proceeds at the highest rate permitted by the most limiting factors These factors are ?

I- The skill limit
Ii- the savings gap
Iii- the fiscal gap
Iv- the foreign exchange gap

Barro and Lee find that ceteris paribus, IMF lending has ?

A. Negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years
B. No effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
C. A significantly positive effect on growth in the subsequent five years
D. An exponentially negative effect on growth ten years

The IMF is an agency charged with providing ?

A. Technical assistance to stock market and financial market problems
B. Loans for post-world war ii reconstruction
C. Short-term credit for international balance of payments deficits
D. Bonds denominated in u.s dollars as a loan to ldcs

In a portfolio investment ?

A. Investors are directly involved in managing the operations
B. As in direct investment investors export goods and services abroad
C. Investors transfer the technology to local investors
D. Investors have no control over operations

Columbia’s Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade ?

A. And the dangers of free capital movements for ldcs with poorly developed financial institutions
B. And the dangers of a trade deficit
C. And the external openness of income growth among the poorest 40 percent of ldcs
D. And mnc domination and its effects on income distribution

The balance on current account ?

I- Equals the absolute value of the balance on capital account
Ii- is financed by savings
Iii- is net grants minus remittances
Iv- includes goods services and unilateral transfers

Bilateral aid ?

A. Is technical aid given by imf
B. Is given directly by one country to another
C. Is aid with repayment in inconvertible currency
D. Is a loan at bankers’ standards

MNCs can help the developing country to ?

I- Finance a savings gap or balance of payments deficit
Ii- obtain foreign technology by adapting existing processes
Iii- generate appropriate technology by adapting existing processes
Iv- employ domestic labor, especially in skilled jobs