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College of Business Administration
Dept. of Economics
Econ. Of Intl. Finance (315)
Dr. Mohammed El-Sakka
Quiz no. 5
Name \ -------------------------------------------------------------Univ. no.\-------------------Serial no. \ -----------------------Q1 To achieve the objectives of the nation the following instruments can be used:
A. Expenditure-changing policies
B. Expenditure-switching policies, and
C. Direct controls
D. All of the above
D
Q2 Expenditure switching policies affect:
A Exports
B Imports
C Income
D All of the above
E Only a and b is true
D
Q3 Monetary policy involves changes in
A. change in government spending
C change in interest rates
B. change in taxes
D changes in subsidies
C
Q4 The IS curve refers to the combinations of interest and real GDP at which the:
A. goods market is in equilibrium
B. money market is in equilibrium
C. foreign exchange market is in equilibrium
D. all markets are in equilibrium
A
Q5 The IS is negatively slopped because of
A. the positive relationship between interest and investment
B. the negative relationship between interest and investment
C. the positive relationship between interest and money demand
D. the negative relationship between interest and money demand
B
Q6 Under a flexible exchange rate system and perfect capital mobility adjustment of real GDP
can be achieved using
A. Monetary policy only
B Fiscal policy only
C Exchange rate policy only
D A combination of the above policies
A
Q7. Expenditure changing policies include the use of
A. fiscal policy
B. Direct controls
C. monetary policy
D. exchange rate policy
B. only a and c of the above is true
E
Q8. The main objectives of the nation are:
A. Internal balance
B. External balance
B. Reasonable rate of growth
D. All of the above is true
D
Q9 Starting from point E adjustment of real
GDP if exchange rate is fixed is achieved using
A. easy money only
B. expansionary fiscal policy only
C. contractionary fiscal policy
D. easy money and expansionary fiscal policy
B
Q10 Starting from point E, adjustment of real GDP in the above graph is achieved by using:
A. tight money
B. easy money
C. expansionary fiscal policy
D. contractionary fiscal policy
E. tight money and expansionary fiscal policy
E
Q11. If MPM is .15, at point E there is a:
A. BOP surplus of 45
B BOP deficit of 45
C BOP deficit of 75
D BOP surplus of 75
C
Q12. Under a flexible exchange rate system adjustment of real GDP can be achieved using
A. Monetary policy only
B. Fiscal policy only
C. Exchange rate policy only
D. combination of the above policies
A
Q13. The BP curve refers to the combinations of interest and real GDP at which the:
A. goods market is in equilibrium
B. money market is in equilibrium
C. balance of payments is in equilibrium
D. all markets are in equilibrium
C
Q14. Expansionary monetary policy is also called
A. Tight money
B. Easy money
B. Continuous money
D. None of the above
B