Relationships Between Countries at Different Levels of Development
49 questions· page 1 of 5
Which role is performed by the World Bank but not by the International Monetary Fund (IMF)?
Options
A facilitating free trade among member countries
B providing assistance to member countries to plan fiscal policies
C providing bailout packages to countries facing external account challenges
D providing monetary assistance to member countries to build infrastructure
Some economists argue there is little evidence of the value of aid in improving economic development in less-developed countries.
Which situation supports this claim?
Options
A Capacity to benefit from transfer of communications technology has increased.
B Investment in infrastructure has created transport links and port facilities.
C Over-reliance on technical assistance has impaired local initiatives and innovation.
D Projects for education and training have helped to enhance the supply side.
What is not a function of the International Monetary Fund (IMF)?
Options
A to encourage exchange rate stability
B to provide financial assistance for a country with failed economic policies
C to provide funds for a water purifying plant in a developing country
D to provide loans for countries following a natural disaster
The following are four conditions sometimes attached to IMF loans to low-income countries.
Which condition would conflict with the ‘infant industry’ argument?
Options
A the need to allow free trade
B the need to control inflation
C the need to have a contractionary fiscal policy
D the need to privatise government enterprises
What is not a function of the International Monetary Fund (IMF)?
Options
A to encourage exchange rate stability
B to provide financial assistance for a country with failed economic policies
C to provide funds for a water purifying plant in a developing country
D to provide loans for countries following a natural disaster
What is least likely to improve as a result of the decision by high-income countries to increase their aid to low-income countries?
Options
A exchange rate of low-income countries
B financial account of the balance of payments of low-income countries
C political relationships between high-income and low-income countries
D reserves of foreign currencies held by low-income countries
Which statement describes a multinational company (MNC)?
Options
A A firm that avoids paying indirect taxes.
B A firm that conducts operations in different countries.
C A firm that experiences diseconomies of scale at low levels of output.
D A firm that trades internationally.
What is the main role of the World Bank?
Options
A to ensure that exchange rate systems are working efficiently
B to help countries enter international markets where trade barriers exist
C to offer short-term assistance to countries with balance of payments problems
D to provide low-interest loans to developing countries for infrastructure projects
The United Nations gives aid to a developing country so it can purchase vaccinations manufactured in India.
How is this aid characterised?
Options
| characteristic 1 | characteristic 2 | |
|---|---|---|
| A | bilateral | tied |
| B | bilateral | untied |
| C | multilateral | tied |
| D | multilateral | untied |
A low-income country receives aid from a high-income country.
When will this aid give maximum benefit in the long term to the low-income country?
Options
| type of aid | purpose of the aid | |
|---|---|---|
| A | grant | purchase of agricultural machinery |
| B | grant | payment of food subsidies |
| C | loan | purchase of agricultural machinery |
| D | loan | payment of food subsidies |