Questões de Língua Inglesa da Escola de Administração Fazendária (ESAF)

Read the text below in order to answer questions 26 to 30:

According to the text, "America's recovery is stalling", which means it is

• A.

  exuberant

• B.

  amazing

• C.

  miraculous

• D.

  speedy

• E.

  delayed

Read the text below in order to answer questions 26 to 30:

The expression "on the wane" in relation to consumer and business confidence means it is

• A.

  lost.

• B.

  invigorated.

• C.

  weakening.

• D.

  strengthened.

• E.

  endorsed.

Read the text below in order to answer questions 31 to 33:

The world's three largest economies are limping. Emerging markets are drifting into financial crisis.

Emerson: Are we sliding into global recession? Hormats: The risk is growing, but we are not there yet. Almost every economy on the globe is slowing down. We haven%u2019t seen this kind of sharp, synchronized downturn for years.

E: Is this the dark side of globalization?

H: You could say that. With the rapid increase in global trade and investment flows, growth in one country has a greater probability of contributing to growth in others. But the reverse is also true. When the world%u2019s largest economy experiences a sharp drop, that inevitably drags down others.

E: There are twin worries now: global recession and financial contagion in emerging markets. Is this more dangerous than the financial contagion of 1997-1998? H: In 1997, a financial crisis in emerging markets led to recession in those economies. But most were able to export their way out, because the US and Europe were growing. Now all major economies are slowing down, as Argentina and Turkey are facing financial crisis. So yes, this situation is more dangerous for them. Even for the industrialized countries there is no locomotive. Countries cannot count on restoring growth by exporting a lot more to one another.

According to the text,

• A.

  a slowdown in the US economy does not affect the global economy.

• B.

  the three largest economies are insulated from this global downturn.

• C.

  the economies of the world are closely linked and interdependent.

• D.

  globalization prevents financial contagion and global recession.

• E.

  emerging countries have constantly had the foresight to cut taxes.

Read the text below in order to answer questions 31 to 33:

According to the interviewee,

• A.

  emerging countries are the ones which steer global economy.

• B.

  Argentina and Turkey have restored their internal growth.

• C.

  Europe has remained insulated from the actual global downturn.

• D.

  globalization has both its advantages and its drawbacks.

• E.

  the threat of financial contagion has been overcome.

Read the text below in order to answer questions 34 to 36:

Fed steers US rates lower by quarter point

The US Federal Reserve last night demonstrated its determination to steer the American economy away from recession when it cut its key interest rate for the seventh time this year and signalled that borrowing costs could fall again.

The Fed announced it was cutting its funds rate by a quarter of a point to 3.5 per cent, its lowest for seven years, and also reduced its largely symbolic discount rate. The discount rate fell a quarter of a point to 3 per cent, matching lows seen in the early 1990's.

In a statement released alongside the rate decision, the Fed reiterated its so-called "easing bias", a signal that rates are more likely to fall than rise, saying that the risks to the US economy remained "weighted mainly toward economic weakness".

The Fed said: "Business profits and capital spending continue to weaken and growth abroad is slowing, weighing on the US economy".

According to the text, the US Federal Reserve

• A. might reduce its interest rate for the 7^th time
• B. has been cutting its interest rate 7 times a year.
• C.

  has been trying to guide the US economy towards recession.

• D.

  may soon announce its willingness to reduce interest rates.

• E. has decided to reduce its interest rates.

Read the text below in order to answer questions 34 to 36:

Fed steers US rates lower by quarter point

The US Federal Reserve last night demonstrated its determination to steer the American economy away from recession when it cut its key interest rate for the seventh time this year and signalled that borrowing costs could fall again.

The Fed announced it was cutting its funds rate by a quarter of a point to 3.5 per cent, its lowest for seven years, and also reduced its largely symbolic discount rate. The discount rate fell a quarter of a point to 3 per cent, matching lows seen in the early 1990's.

In a statement released alongside the rate decision, the Fed reiterated its so-called "easing bias", a signal that rates are more likely to fall than rise, saying that the risks to the US economy remained "weighted mainly toward economic weakness".

The Fed said: "Business profits and capital spending continue to weaken and growth abroad is slowing, weighing on the US economy".

According to the author, such lows in the interest rates

• A. have occurred before.
• B. have weakened the world's economy.
• C. are likely to cause global recession.
• D. might resolve Europe's recession.
• E. have underpinned global growth.

Read the text below in order to answer questions 37 to 40:

Shocks to the system

At the start of the year, it was not uncommon to hear businessmen saying that Brazil was enjoying its best economic conditions for a generation. The country appeared to be well on the way to a period of sustained economic expansion. Most economists were looking to another strong year of growth, with gross domestic product expanding by 4.5 per cent in 2001, on top of 4 per cent in 2000. Real interest rates were about to fall to single digits for the first time in decades.

However, within just a few months, the outlook for the Brazilian economy has deteriorated dramatically. A whole series of unexpected factors are to blame. "We have been confronted by a series of shocks", admits Armínio Fraga, president of the central bank.

The main cause of this turnaround has been the energy crisis. It had been well known for several years that Brazil ran the risk of power shortages because the expansion of capacity was not accompanying growth in demand, leaving the reservoirs that fuel the power stations precariously low. Yet, even with so much advance warning, the introduction of rationing still came as a surprise.

The text suggests that businessmen

• A. have succeeded in importing foreign energy.
• B. have remained optimistic up until now.
• C. are to blame for the energy crisis.
• D.

  have been accompanying the steady Brazilian growth.

• E.

  expressed their optimism concerning Brazil's economy.

Read the text below in order to answer questions 37 to 40:

Shocks to the system

At the start of the year, it was not uncommon to hear businessmen saying that Brazil was enjoying its best economic conditions for a generation. The country appeared to be well on the way to a period of sustained economic expansion. Most economists were looking to another strong year of growth, with gross domestic product expanding by 4.5 per cent in 2001, on top of 4 per cent in 2000. Real interest rates were about to fall to single digits for the first time in decades.

However, within just a few months, the outlook for the Brazilian economy has deteriorated dramatically. A whole series of unexpected factors are to blame. "We have been confronted by a series of shocks", admits Armínio Fraga, president of the central bank.

The main cause of this turnaround has been the energy crisis. It had been well known for several years that Brazil ran the risk of power shortages because the expansion of capacity was not accompanying growth in demand, leaving the reservoirs that fuel the power stations precariously low. Yet, even with so much advance warning, the introduction of rationing still came as a surprise.

Which aspect is not mentioned in the text?

• A. Power shortages.
• B. Environmental impact.
• C. Rationing.
• D. Economic expansion.
• E. Gross domestic product.

Read the text below in order to answer questions 37 to 40:

Shocks to the system

At the start of the year, it was not uncommon to hear businessmen saying that Brazil was enjoying its best economic conditions for a generation. The country appeared to be well on the way to a period of sustained economic expansion. Most economists were looking to another strong year of growth, with gross domestic product expanding by 4.5 per cent in 2001, on top of 4 per cent in 2000. Real interest rates were about to fall to single digits for the first time in decades.

However, within just a few months, the outlook for the Brazilian economy has deteriorated dramatically. A whole series of unexpected factors are to blame. "We have been confronted by a series of shocks", admits Armínio Fraga, president of the central bank.

The main cause of this turnaround has been the energy crisis. It had been well known for several years that Brazil ran the risk of power shortages because the expansion of capacity was not accompanying growth in demand, leaving the reservoirs that fuel the power stations precariously low. Yet, even with so much advance warning, the introduction of rationing still came as a surprise.

According to the text,

• A. the energy crisis made interest rates decrease.
• B.

  the president of the central bank predicted the crisis.

• C. Brazil was able to avert the energy crisis.
• D. more than one element affected Brazil's economy.
• E. advance warning could have avoided the crisis.

Read the text below in order to answer questions 31 to 33:

The headline of the article states that "The world's three largest economies are limping", which means they are

• A. currently experiencing difficulties.
• B. exporting to emerging markets.
• C. finding domestic solutions.
• D. underpinning global growth.
• E. experiencing a high-tech investment boom.