Question 1

____________________ is the selling of one currency (or product) and purchase of another to make a profit on changing exchange rates.

Accepted Answer

Arbitrage

Question 2

Globalization has caused an explosion in the volume of financial transactions that occur every day. What are the factors that contributed to this increase in volume? What are the potential positive and negative effects of the globalization of finance?

Accepted Answer

The increase in the volume of financial transactions can be attributed to several factors that have been brought about by globalization. Firstly, advancements in technology have made it easier for individuals and businesses to engage in financial transactions across borders. This has led to an increase in the number of transactions taking place on a daily basis.

Additionally, the liberalization of financial markets and the removal of barriers to trade and investment have also contributed to the increase in financial transactions. This has allowed for easier access to international markets and has led to a surge in cross-border investments and capital flows.

The potential positive effects of the globalization of finance include increased economic growth and development, as well as greater access to capital for businesses and individuals. It can also lead to greater efficiency in the allocation of resources and the diversification of risk.

However, there are also potential negative effects to consider. Globalization can lead to increased financial instability and vulnerability to economic crises, as seen in the 2008 global financial crisis. It can also exacerbate income inequality and lead to the exploitation of developing countries by more powerful financial institutions.

In conclusion, while the globalization of finance has led to an explosion in the volume of financial transactions, it is important to carefully consider both the positive and negative effects in order to ensure that the benefits are maximized and the risks are mitigated.

Question 3

Commercial liberalism is an economic philosophy that advocates free markets, open trade, and free flowing capital.

Accepted Answer

A) True 
 B)False  True

Question 4

The study of the relationship between geography and the economic conditions and behavior of states that define their levels of production, trade, and consumption of goods and services is the field of ____________________.

Accepted Answer

A)  geo-economics 
B)  geo-politics 
C)  monetary policy 
D)  globalization 
E)  international political economy 
A)  geo-economics 
B)  geo-politics 
C)  monetary policy 
D)  globalization 
E)  international political economy

Question 5

____________________ is an economic theory advocating free markets and the removal of barriers to the flow of trade and capital as a locomotive for prosperity.

Accepted Answer

A)  Globalization 
B)  Commercial liberalism 
C)  Bretton Woods 
D)  Arbitrage 
E)  Geo-economics 
A)  Globalization 
B)  Commercial liberalism 
C)  Bretton Woods 
D)  Arbitrage 
E)  Geo-economics

Question 6

What important concession did Great Britain win support for at the Bretton Woods conference?

Accepted Answer

A)  Strong government action by states facing economic problems 
B)  European economic integration 
C)  The Euro-a common European currency 
D)  A fixed rate of exchange for all currencies 
E)  No tariffs for tea 
A)  Strong government action by states facing economic problems 
B)  European economic integration 
C)  The Euro-a common European currency 
D)  A fixed rate of exchange for all currencies 
E)  No tariffs for tea

Question 7

A government can control the value of its currency by

Accepted Answer

A)  increasing or decreasing the supply of money. 
B)  adjusting interest rates. 
C)  practicing arbitrage. 
D)  both A and B. 
E)  all of the above. 
A)  increasing or decreasing the supply of money. 
B)  adjusting interest rates. 
C)  practicing arbitrage. 
D)  both A and B. 
E)  all of the above.

Question 8

A ____________________ is the kind of system constructed by the European Union when it created the single European currency, the euro.

Accepted Answer

regional c

Question 9

What is the outcome of very high inflation or hyperinflation?

Accepted Answer

A)  The nations will have a balance of trade surplus. 
B)  The nation's exchange rate increases compared to other currencies. 
C)  Arbitrage of that nation's currency increases. 
D)  The currency of the nation becomes basically worthless. 
E)  It increases the value of the nation's currency. 
A)  The nations will have a balance of trade surplus. 
B)  The nation's exchange rate increases compared to other currencies. 
C)  Arbitrage of that nation's currency increases. 
D)  The currency of the nation becomes basically worthless. 
E)  It increases the value of the nation's currency.

Question 10

The lessons learned from the global economic collapse of the 1930s included

Accepted Answer

A)  the major economies could not maintain their fixed exchange rate regime. 
B)  the resultant flexible regime was highly unstable. 
C)  there were speculative attacks on currencies and currency devaluations. 
D)  the global economy collapsed into closed imperial blocks. 
E)  all of the above. 
A)  the major economies could not maintain their fixed exchange rate regime. 
B)  the resultant flexible regime was highly unstable. 
C)  there were speculative attacks on currencies and currency devaluations. 
D)  the global economy collapsed into closed imperial blocks. 
E)  all of the above.

Question 11

What is "dollar convertibility"?

Accepted Answer

During the Bretton Woods regim

Question 12

Monetary policy affects two main economic variables: the supply of money in circulation and interest rates.

Accepted Answer

A) True 
 B)False

Question 13

When the United States government backed up the dollar with gold, it was known as arbitrage.

Accepted Answer

A) True 
 B)False

Question 14

Explain the derivatives market.

Accepted Answer

Derivatives market: Newer financial inst

Question 15

Under a system of fixed exchange rates, the international market determines the value of a country's currency.

Accepted Answer

A) True 
 B)False

Question 16

The "balance of payments" is a calculation summarizing a country's financial transactions with the external world.

Accepted Answer

A) True 
 B)False

Question 17

Describe the economic crisis of 2008. Describe the four stages of the crisis. What have been the impacts of the crisis? How has the crisis called into question the free market-oriented "Washington Consensus" that has dominated since World War II? How have the powerful countries dealt with the crisis?

Accepted Answer

The answer of Describe the economic crisis of 2008. Describe...

Question 18

The Bretton Woods conference at the end of World War II attempted to create a reliable mechanism for determining the value of countries' currencies in relation to one another.

Accepted Answer

A) True 
 B)False

Question 19

Governmental policy tools for managing economies including taxation and spending is called __________ .

Accepted Answer

A)  monetary policy 
B)  exchange rate 
C)  fiscal policy 
D)  money supply 
E)  geo-economics 
A)  monetary policy 
B)  exchange rate 
C)  fiscal policy 
D)  money supply 
E)  geo-economics

Question 20

____________________is (are) the result of an unmanaged process where market forces and private investors, rather than governments, influence the relative rate of exchange for currencies between countries.

Accepted Answer

A)  Fixed exchange rates 
B)  Monetary policies 
C)  Floating exchange rates 
D)  Dollarization 
E)  Inflation 
A)  Fixed exchange rates 
B)  Monetary policies 
C)  Floating exchange rates 
D)  Dollarization 
E)  Inflation

____________________ is the selling of one currency (or product) and purchase of another to make a profit on changing exchange rates.

Globalization has caused an explosion in the volume of financial transactions that occur every day. What are the factors that contributed to this increase in volume? What are the potential positive and negative effects of the globalization of finance?

Commercial liberalism is an economic philosophy that advocates free markets, open trade, and free flowing capital.

The study of the relationship between geography and the economic conditions and behavior of states that define their levels of production, trade, and consumption of goods and services is the field of ____________________.

____________________ is an economic theory advocating free markets and the removal of barriers to the flow of trade and capital as a locomotive for prosperity.

What important concession did Great Britain win support for at the Bretton Woods conference?

A government can control the value of its currency by

A ____________________ is the kind of system constructed by the European Union when it created the single European currency, the euro.

What is the outcome of very high inflation or hyperinflation?

The lessons learned from the global economic collapse of the 1930s included

What is "dollar convertibility"?

Monetary policy affects two main economic variables: the supply of money in circulation and interest rates.

When the United States government backed up the dollar with gold, it was known as arbitrage.

Explain the derivatives market.

Under a system of fixed exchange rates, the international market determines the value of a country's currency.

The "balance of payments" is a calculation summarizing a country's financial transactions with the external world.

The Bretton Woods conference at the end of World War II attempted to create a reliable mechanism for determining the value of countries' currencies in relation to one another.

Governmental policy tools for managing economies including taxation and spending is called __________ .

____________________is (are) the result of an unmanaged process where market forces and private investors, rather than governments, influence the relative rate of exchange for currencies between countries.

Exploring World Politics

Theories of World Politics

Theories of International Decision Making

Rivalries and Relations Among the Great Powers

The Global South in a World of Powers

Nonstate Actors and the Quest for Global

The Threat of Armed Conflict to the World

The Pursuit of Power Through Arms and Alliances

The Quest for Peace Through International Law and Collective Security

International Trade in the Global Marketplace

The Demographic and Cultural Dimensions of Globalization

The Promotion of Human Development and Human Rights

Global Responsibility for the Preservation of the Environment

Looking Ahead at Global Trends

Filters

Exam 10: The Globalization of International Finance

____________________ is the selling of one currency (or product) and purchase of another to make a profit on changing exchange rates.

Globalization has caused an explosion in the volume of financial transactions that occur every day. What are the factors that contributed to this increase in volume? What are the potential positive and negative effects of the globalization of finance?

Commercial liberalism is an economic philosophy that advocates free markets, open trade, and free flowing capital.

The study of the relationship between geography and the economic conditions and behavior of states that define their levels of production, trade, and consumption of goods and services is the field of ____________________.

____________________ is an economic theory advocating free markets and the removal of barriers to the flow of trade and capital as a locomotive for prosperity.

What important concession did Great Britain win support for at the Bretton Woods conference?

A government can control the value of its currency by

A ____________________ is the kind of system constructed by the European Union when it created the single European currency, the euro.

What is the outcome of very high inflation or hyperinflation?

The lessons learned from the global economic collapse of the 1930s included

What is "dollar convertibility"?

Monetary policy affects two main economic variables: the supply of money in circulation and interest rates.

When the United States government backed up the dollar with gold, it was known as arbitrage.

Explain the derivatives market.

Under a system of fixed exchange rates, the international market determines the value of a country's currency.

The "balance of payments" is a calculation summarizing a country's financial transactions with the external world.

The Bretton Woods conference at the end of World War II attempted to create a reliable mechanism for determining the value of countries' currencies in relation to one another.

Governmental policy tools for managing economies including taxation and spending is called __________ .

____________________is (are) the result of an unmanaged process where market forces and private investors, rather than governments, influence the relative rate of exchange for currencies between countries.

Exploring World Politics

Theories of World Politics

Theories of International Decision Making

Rivalries and Relations Among the Great Powers

The Global South in a World of Powers

Nonstate Actors and the Quest for Global

The Threat of Armed Conflict to the World

The Pursuit of Power Through Arms and Alliances

The Quest for Peace Through International Law and Collective Security

International Trade in the Global Marketplace

The Demographic and Cultural Dimensions of Globalization

The Promotion of Human Development and Human Rights

Global Responsibility for the Preservation of the Environment

Looking Ahead at Global Trends

Filters