16. Which of the following refers to a set of free market policies imposed on de
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16. Which of the following refers to a set of free market policies imposed on developing nations by the the World Bank as loan conditions? A. Structural adjustment program B. Autarky C. The Bretton Woods system D. Washington Consensus 17. This is a treaty in which two or more nations agree to reduce or eliminate barriers, opening their borders to freer mutual trade. A. Protectionism B. Free trade agreement C. Customs union D. Global trade compliance 18. The fundamental objective of this organization was to prevent a recurrence of Europe's devastating wars as World War I and World War I1. A. International Monetary Fund B. European Union (EU) C. World Trade Organization D. NAFTA 19. All of the following countries are part of NAFTA except: A. Argentina. B. Canada. C. the United States. D. Mexico. 20. This agreement was formed in 1967 by five countries-the Philippines, Indonesia, Thailand. A. EU B. NAFTA C. Mercosur D. ASEAN 21. All of the following are true of protectionism EXCEPT A. industries must be shielded from foreign competition. B. large trade deficits of the United States must be reduced. C. maximum gain on a worldwide basis will be realized if capital flows are unrestricted D. trade barriers in foreign countries restrict American imports to them. 22. The right to buy a company's stock at a fixed price and under the conditions set by the company's boar directors is called a: A. stock grant. B. stock option. C. stock answer. D. stock bid. 23. Which of the following enacted new regulations on auditing, financial reporting, and legal complian A. The Securities Act B. The Sherman Antitrust Act C. The Sarbanes-Oxley Act D. The Dodd-Frank ActExplanation / Answer
Please find answers to first 4 questions :
Answer to Q16:
Structural Adjustment Program (SAP) are the policies and measures which countries must follow in order to qualify for new World Bank and International Monetary Fund (IMF) loans and help them make debt repayments on the older debts owed to commercial banks, governments and the World Bank.
SAPs are created with the goal of reducing the borrowing country's fiscal imbalances in the short and medium term or in order to adjust the economy to long-term growth. SAPs are supposed to allow the economies of the developing countries to become more market oriented. This then forces them to concentrate more on trade and production so it can boost their economy. Through conditions, SAPs generally implement "free market" programmes and policy. These programs include internal changes (notably privatization and deregulation) as well as external ones, especially the reduction of trade barriers. Countries that fail to enact these programmes may be subject to severe fiscal discipline
ANSWER : A) STRUCTURAL ADJUSTMENT POLICIES
Answer to Q.17 :
Free Trade Agreement is a Treaty (such as FTAA or NAFTA) between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances but (in contrast to a common market)’ However , capital or labor may not move freely. Member countries usually impose a uniform tariff (called common external tariff) on trade with non-member countries.
ANSWER : B) FREE TRADE AGREEMENT
Answer to Q.18:
The fundamental purposes of the European Union are to promote greater social, political and economic harmony among the nations of Western Europe. The EU reasons that nations whose economies are interdependent are less likely to engage in conflict.
Five top aims of the EU
ANSWER : B) EUROPEAN UNION
Answer to Q.19 :
The North American Free Trade Agreement (NAFTA) is a treaty entered into by the United States, Canada, and Mexico; it went into effect on January 1, 1994. Thus Argentina is not part of NAFTA
ANSWER : A) ARGENTINA
ANSWER : A) STRUCTURAL ADJUSTMENT POLICIES
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