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Free CFA Economics Practice Questions & Answers

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Question 61

The portfolio balance model predicts long‑term depreciation when:

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Question 62

A surge in foreign investment inflows typically causes:

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Question 63

A sudden stop in capital inflows is most likely to cause:

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Question 64

A country with high interest rates may still experience currency depreciation if:

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Question 65

A country with strong capital outflows is likely experiencing:

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Question 66

A country with a rapidly aging population may see its currency weaken because:

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Question 67

A government imposes a tax on short‑term foreign investments. What is the most likely goal?

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Question 68

Capital controls are most effective when:

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Question 69

A country restricts foreign currency withdrawals from domestic banks. This is an example of:

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Question 70

A country imposes capital controls to prevent currency appreciation. Which situation likely triggered this?

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Question 71

A drawback of capital controls is that they:

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Question 72

A central bank buys foreign currency in the market. What is the likely effect?

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Question 73

A currency crisis is most likely when:

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Question 74

A sudden reversal of capital inflows is dangerous because:

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Question 75

A currency crisis often begins when:

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Question 76

A rapid increase in private sector foreign‑currency borrowing is dangerous because:

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Question 77

A country with a fixed exchange rate and high inflation is vulnerable because:

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Question 78

A sharp drop in foreign reserves is a warning sign because:

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Question 79

A country with rising short‑term external debt and falling reserves is likely to face:

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Question 80

Non‑ICT capital includes:

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Question 81

Public infrastructure includes:

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Question 82

A country that opens its economy to trade is likely to experience:

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Question 83

A country with persistent trade surpluses may experience:

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Question 84

A country with high capital inflows but weak institutions may experience:

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Question 85

Long‑term economic growth is primarily driven by:

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Question 86

In growth theory, capital deepening refers to:

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Question 87

Capital deepening eventually faces diminishing returns because:

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Question 88

Sustained long‑term growth requires:

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Question 89

A country with low capital per worker but strong investment growth is likely to experience:

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Question 90

In a standard production function, output increases when:

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Free CFA Economics Practice Questions & Answers

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Thank you