CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

In the 1970s the price of oil quadrupled and it became economically viable to drill for North Sea Oil off the coast of Scotland. By the late 1970s, Britain had become a net exporter of oil; it had previously been a net importer. The pound soared in value, but the country fell into recession when British workers demanded higher wages and exports became uncompetitive. This is known as:
A. England oil disaster.
B. Dutch disease.
C. Exchange rate overshooting.
Explanation: In economics, the Dutch disease is the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing sector.

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