Question 1

Which of the following statements is false with regard to 11 countries of the European monetary Union:

Accepted Answer

A) They have adopted a single currency 
B) They have established a single central bank 
C) Conduct a common fiscal policy 
D) Conduct a single monetary policy 
A) They have adopted a single currency 
B) They have established a single central bank 
C) Conduct a common fiscal policy 
D) Conduct a single monetary policy B

Question 2

The immediate cause for the collapse of the Bretton Woods System was:

Accepted Answer

A) the expectation that the United States would soon be forced to devalue the dollar 
B) the massive flight of liquid capital from the United States 
C) the attempt by three small European central banks to convert part of their dollar holdings into gold at the Fed 
D) all of the above 
A) the expectation that the United States would soon be forced to devalue the dollar 
B) the massive flight of liquid capital from the United States 
C) the attempt by three small European central banks to convert part of their dollar holdings into gold at the Fed 
D) all of the above D

Question 3

On which of the following principles was the Bretton Woods System based on?

Accepted Answer

A) Fixed exchange rates 
B) Currency convertibility 
C) Free trade 
D) All of the above 
A) Fixed exchange rates 
B) Currency convertibility 
C) Free trade 
D) All of the above D

Question 4

The fundamental cause for the collapse of the Bretton Woods System was:

Accepted Answer

A) lack of confidence 
B) inadequate liquidity 
C) lack of an adequate adjustment mechanism 
D) all of the above 
A) lack of confidence 
B) inadequate liquidity 
C) lack of an adequate adjustment mechanism 
D) all of the above

Question 5

Which of the following statements about the gold standard is true?

Accepted Answer

A) London was the undisputed center of international trade and finance 
B) international trade and international capital flows were mostly unrestricted 
C) International liquid capital flows were mostly stabilizing 
D) all of the above 
A) London was the undisputed center of international trade and finance 
B) international trade and international capital flows were mostly unrestricted 
C) International liquid capital flows were mostly stabilizing 
D) all of the above

Question 6

The interwar period was characterized by:

Accepted Answer

A) the operation of the gold standard 
B) chaotic conditions in international trade and finance 
C) free trade 
D) stabilizing international capital flows 
A) the operation of the gold standard 
B) chaotic conditions in international trade and finance 
C) free trade 
D) stabilizing international capital flows

Question 7

Which of the following was a primary cause of the U.S.balance of payments deficits during the late 1960s?:

Accepted Answer

A) Capital outflows 
B) Domestic inflation 
C) Increased foreign competition 
D) All of the above 
A) Capital outflows 
B) Domestic inflation 
C) Increased foreign competition 
D) All of the above

Question 8

Balance of payments adjustment under the gold standard is now believed to have occurred primarily through:

Accepted Answer

A) the price-specie-flow mechanism 
B) gold shipments 
C) stabilizing short-term capital flows and changes in national incomes 
D) free trade 
A) the price-specie-flow mechanism 
B) gold shipments 
C) stabilizing short-term capital flows and changes in national incomes 
D) free trade

Question 9

Which is one of the most serious international economic problems facing the world today?

Accepted Answer

A) Large volatility and disequilibria in exchange rates and frequent crises in emerging markets 
B) The rise of protectionism in developed countries and the high structural unemployment in Western Europe 
C) The restructuring problems of Eastern Europe and the former Soviet Union and the deep poverty of some of the poorest developing countries 
D) All of the above 
A) Large volatility and disequilibria in exchange rates and frequent crises in emerging markets 
B) The rise of protectionism in developed countries and the high structural unemployment in Western Europe 
C) The restructuring problems of Eastern Europe and the former Soviet Union and the deep poverty of some of the poorest developing countries 
D) All of the above

Question 10

Which of the following did not represent an evolution of the Bretton Woods System?

Accepted Answer

A) General Arrangements to Borrow 
B) managed floating 
C) standby arrangements 
D) Special Drawing Rights 
A) General Arrangements to Borrow 
B) managed floating 
C) standby arrangements 
D) Special Drawing Rights

Question 11

The Bretton Woods System:

Accepted Answer

A) allowed nation to change their par values when facing fundamental disequilibrium 
B) allowed nations to change their par values when facing a temporary disequilibrium 
C) did not allow nations to change their par exchange rates under any circumstance 
D) allowed only deficit nations to change their par values,but not surplus nations 
A) allowed nation to change their par values when facing fundamental disequilibrium 
B) allowed nations to change their par values when facing a temporary disequilibrium 
C) did not allow nations to change their par exchange rates under any circumstance 
D) allowed only deficit nations to change their par values,but not surplus nations

Question 12

The present international monetary system is a:

Accepted Answer

A) gold standard 
B) flexible exchange rate system 
C) managed exchange rate system 
D) a target zone system 
A) gold standard 
B) flexible exchange rate system 
C) managed exchange rate system 
D) a target zone system

Question 13

During the 1960s the U.S.attempted to correct its balance of payments deficits by:

Accepted Answer

A) ad hoc measures 
B) devaluing the dollar 
C) deflating the economy 
D) restricting imports 
A) ad hoc measures 
B) devaluing the dollar 
C) deflating the economy 
D) restricting imports

Question 14

The Bretton Woods System was a:

Accepted Answer

A) gold standard 
B) managed floating exchange rate system 
C) gold-exchange standard 
D) crawling peg system 
A) gold standard 
B) managed floating exchange rate system 
C) gold-exchange standard 
D) crawling peg system

Question 15

Which of the following is false with regard to the present international monetary system?

Accepted Answer

A) Special Drawing Rights are the primary reserve asset 
B) Monetary authorities intervene in foreign exchange markets to smooth out excessive short-run fluctuations in exchange rates 
C) It was forced on the world by the collapse of the Bretton Woods System 
D) It was formally recognized in the Jamaica Accords 
A) Special Drawing Rights are the primary reserve asset 
B) Monetary authorities intervene in foreign exchange markets to smooth out excessive short-run fluctuations in exchange rates 
C) It was forced on the world by the collapse of the Bretton Woods System 
D) It was formally recognized in the Jamaica Accords

Which of the following statements is false with regard to 11 countries of the European monetary Union:

The immediate cause for the collapse of the Bretton Woods System was:

On which of the following principles was the Bretton Woods System based on?

The fundamental cause for the collapse of the Bretton Woods System was:

Which of the following statements about the gold standard is true?

The interwar period was characterized by:

Which of the following was a primary cause of the U.S.balance of payments deficits during the late 1960s?:

Balance of payments adjustment under the gold standard is now believed to have occurred primarily through:

Which is one of the most serious international economic problems facing the world today?

Which of the following did not represent an evolution of the Bretton Woods System?

The Bretton Woods System:

The present international monetary system is a:

During the 1960s the U.S.attempted to correct its balance of payments deficits by:

The Bretton Woods System was a:

Which of the following is false with regard to the present international monetary system?

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

Filters

Exam 21: The International Monetary System: Past, Present, and Future

Which of the following statements is false with regard to 11 countries of the European monetary Union:

The immediate cause for the collapse of the Bretton Woods System was:

On which of the following principles was the Bretton Woods System based on?

The fundamental cause for the collapse of the Bretton Woods System was:

Which of the following statements about the gold standard is true?

The interwar period was characterized by:

Which of the following was a primary cause of the U.S.balance of payments deficits during the late 1960s?:

Balance of payments adjustment under the gold standard is now believed to have occurred primarily through:

Which is one of the most serious international economic problems facing the world today?

Which of the following did not represent an evolution of the Bretton Woods System?

The Bretton Woods System:

The present international monetary system is a:

During the 1960s the U.S.attempted to correct its balance of payments deficits by:

The Bretton Woods System was a:

Which of the following is false with regard to the present international monetary system?

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

Filters