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"economics"exercise:International Bank for Reconstruction and Development
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Questions 1:
The following international trade information is available for a hypothetical economy:
Following a 12% depreciation in the DCU, the trade balance will be closest to:
A 、–1,726.
B 、–1,648.
C、 –1,674.
Questions 2:
Which of the following best describes a function of the International Bank for Reconstruction and Development?
A 、Lending foreign currencies on a temporary basis to address balance of payment issues
B、 Regulating cross-border trade relationships on a global scale
C 、Providing low interest rate loans to developing countries
View answer resolution
【Answer to question 1】B
【analysis】
B is correct. Impact on trade balance:
【Answer to question 2】C
【analysis】
C is correct. Closely affiliated with The World Bank Group, the International Bank for Reconstruction and Development (IBRD) provides low or no-interest loans and grants to developing countries that have unfavorable credit or no access to international credit markets.
A is incorrect. This is a function of the IMF.
B is incorrect. This is a function of the World Trade Organization.
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