The document provides instructions for a take-home exam, including allocating time appropriately across 3 questions worth a total of 100 marks. Question 1 contains 10 short questions worth 5 marks each about macroeconomic concepts. Question 2 asks for a 25-mark report on how the customs department can reorganize to meet revenue targets. Question 3, worth 25 marks, asks students to argue whether Sri Lanka should seek IMF funding to address its balance of payments crisis.
The document provides instructions for a take-home exam, including allocating time appropriately across 3 questions worth a total of 100 marks. Question 1 contains 10 short questions worth 5 marks each about macroeconomic concepts. Question 2 asks for a 25-mark report on how the customs department can reorganize to meet revenue targets. Question 3, worth 25 marks, asks students to argue whether Sri Lanka should seek IMF funding to address its balance of payments crisis.
The document provides instructions for a take-home exam, including allocating time appropriately across 3 questions worth a total of 100 marks. Question 1 contains 10 short questions worth 5 marks each about macroeconomic concepts. Question 2 asks for a 25-mark report on how the customs department can reorganize to meet revenue targets. Question 3, worth 25 marks, asks students to argue whether Sri Lanka should seek IMF funding to address its balance of payments crisis.
The document provides instructions for a take-home exam, including allocating time appropriately across 3 questions worth a total of 100 marks. Question 1 contains 10 short questions worth 5 marks each about macroeconomic concepts. Question 2 asks for a 25-mark report on how the customs department can reorganize to meet revenue targets. Question 3, worth 25 marks, asks students to argue whether Sri Lanka should seek IMF funding to address its balance of payments crisis.
MBAC 505: Macroeconomic Framework and Customs Management
Final Examination (Take Home)
December 26, 2021, Exam Duration: 3.5 hours (0900h – 1230h)
Instructions to Candidates hrs Add the standard cover page with the title “Take Home Exam” and straight start answering the questions from next page. Save as a PDF document with your registration number as the file name and upload to the given link in the subject page of Prajna portal. As informed, your answer script will be subject to Turnitin similarity search. Please upload the document during the specified time period.
• Answer Question No 01 for 50 marks and the other two Questions for 25 marks each; total 100 marks. • Allocate your time appropriately considering the marks assigned to each question or sub- part of a question. • Your answers should be comprehensive and well-rounded to meet the requirements of the Rubrics.
1. Give brief answers to the following questions. Each question carries 05 marks.
1.1 Briefly explain the difference between the Gross Domestic Product and Gross National Product. 1.2 Do you think that the per capita income in nominal terms is an appropriate measure of the wellbeing of people? Why or why not? 1.3 China’s purchasing power parity (PPP) GDP is higher than that of USA. Does it mean China’s economy has overtaken US economy? Justify your answer. 1.4 Explain what happens to general price level if there is an increase in money supply while all other factors remaining unchanged. 1.5 Indicate whether the following statement is true, false or uncertain by giving reasons: “If the Ministry of Finance causes the interest rates to decline and credit levels to go up, it constitutes a monetary policy action” 1.6 Indicate five measures which the government can adopt to generate savings in the budget. 1.7 Why is the borrowing of the government from the central bank highly inflationary? 1.8 According to the quantity theory of money, what is the condition which a central bank should satisfy to keep the inflation at zero level? 1.9 What happens to the exchange rate if the domestic inflation is higher than the foreign country inflation? Explain briefly. 1.10 Indicate whether the following statement is true, false, or uncertain by giving reasons: “When an International Sovereign Bond is traded in the market at a discount, its yield rate is lower than the coupon rate”
2. Write a report outlining how the Customs Department should reorganize itself to attain the revenue targets fixed for Sri Lanka Customs in Budget 2022. (25 marks)
3. Some economists have suggested that Sri Lanka should seek a funding facility from the IMF to overcome its present balance of payments crisis. Do you agree? Explain your answer with rationale. (25 marks)
