Comparative Advantage
c. specific programs targeted to increasing food production and eliminating malnutrition
d. programs to improve the infrastructure of a country such as building roads and utilities
_____ 8. Structural Adjustment Reforms have resulted in
a. overvalued exchange rates
b. more parastatals and unions in the former Soviet-bloc
c. more centralized decision-making
d. many developing countries transitioning to market-oriented economies
e. all of the above
_____ 9. Contractionary monetary policy tends to
a. decrease interest rates
b. increase rates of inflation
c. weaken the value of the dollar
d. decrease exports and increases imports
e. all of the above
_____ 10. The International Monetary Fund
a. is the primary source of funding for the United Nations and The World Bank Group
b. is a consortium of European countries that focuses on the privatization of the Soviet-bloc
c. only serves developing countries with international finance problems
d. provides loans for countries experiencing foreign exchange deficiencies and balance of payments disequilibria
_____ 11. Major challenges the IMF faces include
a. the demand for debt capital has fallen as the number of countries eligible for IMF financing has fallen
b. real global interest rates have risen as the gap between the savings rate and the demand for investment capital has grown
c. the growing amount of private sector foreign investment has flooded capital markets
d. more foreign aid from NGOs
e. all of the above
_____ 12. The World Bank Group
a. works closely with host governments to identify, administer, and provide loans for reconstruction and development projects, and to simulate private sector investment
b. is comprised of the UN, IMF and the EFTA
c. assists small entrepreneurial businesses with investment capital
d. is owned by a consortium of developing countries
_____13. The Grameen Bank
a. focuses on women in Sub-Saharan Africa that raise food crops
b. focuses on men in South America as an alternative to drug cartel income
c. makes small low-interest loans in Bangladesh, primarily to rural women
d. makes small low-interest loans for environmental projects in third world countries
_____14. In terms of development, the 1970s focused on
a. sustainable development, using wholistic or comprehensive approaches
b. bail-outs, particularly the Latin American financial crisis