Midterm 1

Question 1

What is the capital of Indonesia?

Answer 1

Jakarta

Question 2

What is the currency of Indonesia?

Answer 2

Rupiah

Question 3

What is the capital of Malaysia?

Answer 3

Kuala Lumpur

Question 4

What is the currency of Malaysia

Answer 4

Ringgit

Question 5

What are the four tigers?

Answer 5

Hong Kong, Taiwan, South Korea, Singapore

Question 6

What are the Asean-4 countries?

Answer 6

Malaysia, Thailand, Indonesia, Philippines

Question 7

Which economy has fixed exchange rate?

Answer 7

Hong Kong

Question 8

Which country has experienced devising hyperinflation over the past 60 years?

Answer 8

Indonesia due to political instability, economic mismanagement, economic isolation

Question 9

What is the two corner solution?

Answer 9

Countries choosing either a fixed exchange rate or a fully flexible exchange rate but never both

Question 10

What are the 6 strategies of development?

Answer 10

1. Monetarist
2. Open Economy
3. Industrialization
4. Green Revolution
5. Redistribution
6. Socialist

Question 11

What does the Gini coefficient measure?

Answer 11

greater income inequality in a nation

Question 12

What is the belt and road initiative (BRI)?

Answer 12

China’s infrastructure and investment project. aimed at building trade routes across Asia, Africa, Europe

Question 13

What are the main motivations behind China’s BRI?

Answer 13

Enhancing trade, promoting regional connectivity, increasing China’s geopolitical influence

Question 14

What are the three views on China’s BRI?

Answer 14

1. Optimistic: It will help global development and create shared prosperity.
2. Strategic: It is China’s way to gain influence and challenge U.S. global dominance.
3. Skeptical: BRI may be economically unsustainable due to heavy debt burdens on participating countries.

Question 15

What are the eight High-Performing Asian Economies (HPAEs)?

Answer 15

Japan, South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia

Question 16

What are the long-term issues for the future development of Northeast Asia?

Answer 16

Aging populations, structural reforms, regional integration, maintaining economic growth despite demographic changes

Question 17

What are the key features of the Asian Development Model?

Answer 17

High savings rates, export promotion, human capital development, government intervention in industrial policies.

Question 18

What are the three regimes in the Impossible Trinity?

Answer 18

Fixed exchange rate, free capital movement, independent monetary policy

Question 19

Which country/economy had the highest corporate ownership concentration before the Asian Financial Crisis?

Answer 19

Indonesia

Question 20

Which country/economy is ranked as the most attractive FDI destination in the world?

Answer 20

China

Question 21

Which country/economy had the highest ratio of short-term foreign debt to reserves right before the Asian Financial Crisis?

Answer 21

Thailand

Question 22

Which country/economy had the highest corporate leverage (debt-equity ratios) before the Asian Financial Crisis?

Answer 22

South Korea

Question 23

Which country/economy has the highest saving rates?

Answer 23

China

Question 24

What were the six key components of the IMF rescue packages that exacerbated the crisis?

Answer 24

1.Fiscal austerity
2.interest rate hikes
3. currency devaluation
4. structural reforms
5.privatization
6.deregulation

Question 25

Which countries received IMF bailouts during the Asian Financial Crisis?

Answer 25

Thailand, Indonesia, South Korea

Question 26

What were the “Sick-5” countries most affected by the Asian Financial Crisis?

Answer 26

Thailand, Indonesia, South Korea, Malaysia, Philippines

Question 27

What were the five main causes of the Asian Financial Crisis?

Answer 27

1.Over-leveraging 2.short-term foreign debt 3.fixed exchange rates 4.weak corporate governance 5. speculative attacks on currencies.

Question 28

How did the “Sick-5” resolve the Impossible Trinity problem after the crisis?

Answer 28

They adopted flexible exchange rates and liberalized capital markets.

Question 29

Which countries/economies were least affected by the Asian Financial Crisis?

Answer 29

Taiwan and Singapore

Question 30

When and where did the Asian Financial Crisis officially start?

Answer 30

July 1997 in Thailand

Question 31

What is the double mismatch problem?

Answer 31

Currency mismatch: Borrowing in foreign currencies Maturity mismatch: using short-term loans for long-term projects