ECO 336 USM COMPREHENSIVE REVIEW
2026 VERIFIED QUESTIONS AND
SOLUTIONS
◉The original mission of the World Bank was to
A.
provide financial assistance for the reconstruction of warminus
damaged
nations.
B.
provide capital to underdeveloped countries.
C.
provide capital to firms around the world.
D.
help countries manage their exchange rates. Answer: A
◉Which of the following is an example of an institution whose
primary concern is global stability?
A.
IMF (International Monetary Fund)
B.
,OPEC (Oil Producing and Exporting Countries)
C.
Asian Development Bank
D.
NAFTA (North American Free Trade Agreement) Answer: A
◉A country's foreign exchange reserves refers to
A.
the total amount of a country's currency held by other nations.
B.
the currency of the nation itself.
C.
the country's holdings of gold and internationally accepted
currencies.
D.
the country's Special Drawing Rights (SDRs) at the IMF. Answer: C
◉It is often costly for developing countries to adjust to trade
agreements because
A.
developing countries often have limited social safety nets to provide
support to workers in transition.
,B.
their economies are more diversified than those of developed
countries.
C.
trade agreements systematically expect more liberalization by
developing countries than is expected of developed countries.
D.
All of the above. Answer: A
◉Institutions are
A.
the same thing as organizations.
B.
associations of individuals or groups.
C.
a set of rules governing behavior, whether written or not.
D.
always embodied in a written set of rules. Answer: C
◉The United States is an example of
A.
a common market.
, B.
a customs union.
C.
a free trade area.
D.
an economic union. Answer: D
◉The World Bank formed the World Trade Organization when it
became clear that to alleviate poverty in developing nations,
agricultural trade barriers were going to have to be reduced.
True
False Answer: False
◉IMF conditionality refers to the
A.
changes a country must make in order to receive IMF financial
assistance.
B.
maximumminus
sized
loan the IMF will make.
C.
2026 VERIFIED QUESTIONS AND
SOLUTIONS
◉The original mission of the World Bank was to
A.
provide financial assistance for the reconstruction of warminus
damaged
nations.
B.
provide capital to underdeveloped countries.
C.
provide capital to firms around the world.
D.
help countries manage their exchange rates. Answer: A
◉Which of the following is an example of an institution whose
primary concern is global stability?
A.
IMF (International Monetary Fund)
B.
,OPEC (Oil Producing and Exporting Countries)
C.
Asian Development Bank
D.
NAFTA (North American Free Trade Agreement) Answer: A
◉A country's foreign exchange reserves refers to
A.
the total amount of a country's currency held by other nations.
B.
the currency of the nation itself.
C.
the country's holdings of gold and internationally accepted
currencies.
D.
the country's Special Drawing Rights (SDRs) at the IMF. Answer: C
◉It is often costly for developing countries to adjust to trade
agreements because
A.
developing countries often have limited social safety nets to provide
support to workers in transition.
,B.
their economies are more diversified than those of developed
countries.
C.
trade agreements systematically expect more liberalization by
developing countries than is expected of developed countries.
D.
All of the above. Answer: A
◉Institutions are
A.
the same thing as organizations.
B.
associations of individuals or groups.
C.
a set of rules governing behavior, whether written or not.
D.
always embodied in a written set of rules. Answer: C
◉The United States is an example of
A.
a common market.
, B.
a customs union.
C.
a free trade area.
D.
an economic union. Answer: D
◉The World Bank formed the World Trade Organization when it
became clear that to alleviate poverty in developing nations,
agricultural trade barriers were going to have to be reduced.
True
False Answer: False
◉IMF conditionality refers to the
A.
changes a country must make in order to receive IMF financial
assistance.
B.
maximumminus
sized
loan the IMF will make.
C.
