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1. The marshall-lerner condition states that a devaluation will improve a country's balance of payments if me sum of elasticity of demand for exports and imports is:

[Pubali Bank Officer(Cash)-2014 : 2014]

1. zero

2. equal to one

3. greater than one

4. less than one

Answer

2. A country with a current account surplus

[Pubali Bank Officer(Cash)-2014 : 2014]

1. is using foreign saving to supplement domestic saving in financing investment projects

2. is using part of its domestic saving to lend overseas rather than finance domestic investment

3. is accumulating foreign debt

4. is accumulating capita! at a pace higher than it's domestic saving rate

Answer

3. The effective rate of protection measures

[Pubali Bank Officer(Cash)-2014 : 2014]

1. the percentage by which domestic producers' gross receipts are increased by protection

2. the percentage increase in domestic producers value added that is due to protection

3. the benefit that the government gets from imposing tariffs

4. the costs imposed by a tariff on the consumers of the imported good.

Answer

4. There will be no crowding out if

[Pubali Bank Officer(Cash)-2014 : 2014]

1. The demand for money increases as real GDP increases.

2. The supply of money is totally unresponsive to changes in the interest rate.

3. investment is totally unresponsive to changes in the interest rate

4. investment is totally unresponsive to changes in the real GDP

Answer

5. In 2008 the exchange rate of the Euro appreciated against the US dollar. A possible cause for the appreciation of the Euro was

[Pubali Bank Officer(Cash)-2014 : 2014]

1. Increase investment in USA by the European Union(EU)

2. Increasingly more US tourists were visiting EU countries

3. Increasingly more US exports to EU countries

4. The European Central Bank raised the value of the Euro

Answer

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