Q. How does monetary policy play a role in disaster management?
A.
By controlling inflation
B.
By adjusting interest rates to stimulate recovery
C.
By regulating banking operations
D.
By managing foreign reserves
Solution
Monetary policy can play a significant role in disaster management by adjusting interest rates to stimulate economic recovery in the aftermath of a disaster.
Correct Answer:
B
— By adjusting interest rates to stimulate recovery
Q. In the context of microeconomics, how can disaster management frameworks affect local businesses?
A.
By increasing competition
B.
By providing subsidies and support
C.
By reducing consumer demand
D.
By increasing taxes
Solution
Disaster management frameworks can affect local businesses positively by providing subsidies and support to help them recover and sustain operations after a disaster.
Correct Answer:
B
— By providing subsidies and support
Q. What is a common challenge faced by banks during disaster recovery?
A.
Increased loan demand
B.
Decreased interest rates
C.
High liquidity
D.
Stable asset prices
Solution
A common challenge faced by banks during disaster recovery is the increased loan demand from businesses and individuals seeking to rebuild and recover.
Q. What is the primary goal of a Disaster Management Framework in the context of macroeconomics?
A.
To increase government spending
B.
To stabilize the economy during crises
C.
To reduce inflation rates
D.
To promote international trade
Solution
The primary goal of a Disaster Management Framework in macroeconomics is to stabilize the economy during crises by implementing measures that mitigate the impact of disasters.
Correct Answer:
B
— To stabilize the economy during crises
Q. What is the significance of a contingency fund in disaster management?
A.
To reduce government debt
B.
To provide immediate financial resources for emergencies
C.
To stabilize currency value
D.
To fund long-term development projects
Solution
A contingency fund is significant in disaster management as it provides immediate financial resources for emergencies, enabling quick response and recovery efforts.
Correct Answer:
B
— To provide immediate financial resources for emergencies
Q. Which economic indicator is most likely to be affected by a natural disaster?
A.
Unemployment rate
B.
Consumer confidence index
C.
Gross domestic product (GDP)
D.
All of the above
Solution
All of the above economic indicators are likely to be affected by a natural disaster, as they reflect the overall economic health and consumer sentiment.
