1 . Debt markets in emerging markets are usually characterized by

A . Higher debt yields and therefore higher risk premiums than developed markets

B . Smaller market caps than equity markets

C . A greater amount of corporate bonds to government bonds

D . An inverse correlation with the performance of equity markets

2 . Frontier economies are

A . Upcoming , mature emerging markets

B . Less integrated to world markets-still under capital controls

C . Growing slowly

D . Highly correlated with mature markets

3 . Emerging market booms and busts best coincide with

A . US interest rate fluctuations

B . Lack of corruption in the local government

C . Capital inflows and outflows

D . A trade surplus with large market makers

4 . Generally speaking , domestic financial deregulation policies make it :

A . Easier for domestic companies to borrow in foreign currencies

B . Harder for domestic companies to borrow in foreign currencies

C . Harder for external companies to invest in the local currency

D . Easer for central banks to print money

5 . The three killers of emerging markets are

A . Revolution . inflation anarch

B . Inflation, revolution , corruption

C . Corruption, war , inflation

D . Corruption, revolution, lack of regulation

6 . Carry trade can have what negative effect on global emerging markets ?

A . It can cause inflation

B . It lowers interest rates

C . Both A and B

D . It can increase government deficits .

7 . Emerging market booms usually begin with

A . A combination of tightening up domestic regulations and monetary easing in developed countrie

B . A combination of higher domestic interest rates and lower interest rates developed countries

C . A combination of loosening up domestic regulations and monetary easing in developed countries

D . A combination of lower government deficits and lower external debt

8 . When a country lives beyond its means , it has

A . Trade surplus

B . A Current Account deficit

C . Positive carry trade

D . Negative capital flows

9. Which of the following completions to the statement below is false ? Emerging market

institutions...

A . Rank low on the Index of Economic Freedom

B . Rank high on the Corruption Index

C . Rank high on the Entrepreneurship Index

D . Rank low on the International Competitiveness Index

10 . IMF bailout packages usually come with the following requirements

A . Wage and price restraint

B . Credit restraint

C. Tight fiscal policy

D . All the above

11 . What is the correlation between emerging market equities and US Interest rates ?

A . When interest rates in the US are high , emerging market equities flourish

B . When interest rates in the US are high , emerging market equities decline

C . US Interest rates have no impact on emerging markets

D . There is some correlation , but interest rates in the native country are more Important

12. Carry trade

A . Is a source of cheap money

B . Fuels asset bubbles

C . Helps local currencies appreciate

D . All of the above

13 . What should fund managers look for in allocating assets in emerging markets ?

A . Emerging markets with improving macroeconomic fundamentals

B . Emerging markets with a "normal" population pyramid

C . Emerging markets with democratic institutions

A and B

14 . Which of the following statement about GEM debt markets is true ?

A . Debt yields are higher than mature economies , reflecting a risk premium

B . Foreign investors prefer them over equity markets

C . Debt is only issued in a country's native currency

D . None the above

15 . Which of the following is not a driver of capital flows to emerging markets ?

D . The lifting of capital controls

E . Government deregulation

F . Trade liberalization

G . Frequent government bond auctions

16 . Which country is a textbook case of a country that has committed the " Original Sin ?

A. Spain

B . Italy

C . Greece

D . Germany

17 . Which of the following is a sign that a boom is turning into a bust ?

A . A decrease in exports

B . Unemployment skyrocketing

C . Domestic companies listing on international stock exchanges

D . Currency overvaluation

18 . what's behind Brazil , 's market rally in recent months ?

A . The election of a pro-market government

B . Falling US yields

C . An upgrade from Moody's and S & P Global

A and B

19 . Which of the following Is NOT a historic exon / e of trade liberalization ?

A . Broadening of the EU

B . Creation of NAFTA

C . Implementation of capital controls

D . Easy of commodity and capital flows across national boarders

20 . Which of the following factors raised fears that Turkey's situation is getting worse ?

A . Higher US interest rates

B . A decline in foreign currency reserves

C . A spike in government deficits

D . A spike in current account deficits