Exam 10: The Globalization of International Finance

One phase of the Crisis of 2008 was __________.

Advocates of ____________________ policy believe that by controlling the growth of the money supply, governments can regulate their nations' economic activity and control inflation.

The ________ and the _____ were created to bolster financial and monetary relations under the Bretton Woods system.

The primary reason governments attempt to manage their currencies is to prevent inflation.

There is little, if any, advantage for a state to maintain a weak currency.

Since the early 1970s, the world has had a system of fixed, but adjustable exchange rates.

The pooling of sovereignty to create a common currency and a single monetary system for members in a region is a(n) _________ .

Geo-economics is 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.

Because of competing values, goals, and priorities, nation-states are limited in their ability to control monetary outcomes.

What was the result of the U.S. change away from a policy of dollar convertibility?

The policy reforms required by the International Monetary Fund (IMF) and World Bank to receive assistance are called __________ .

In what ways can private investors affect a currency's value? In what ways can a government's central bank affect the value of the state's currency? How are the role and the interests of the government different from that of a private investor?

What is globalization?

The economic crisis of 2008 has called into question whether the U.S. dollar should continue to be the dominant currency.

The dominant economic approach during the Bretton Woods system, which combined open international markets with domestic state intervention to attain such goals as full employment and social welfare is called _____________.

The financial procedure that is used to calculate the values of currencies and credits when capital is transferred across borders through trade, investment, foreign aid, and loans is called _________.

What are the two principle economic variables at work in monetary policy?

The _________ was designed to get U.S. dollars into the hands of European countries that needed them the most.

The sum of a country's positive financial transactions with the external world minus the country's total international debt is known as its _________________________.

Unlike private investors, governments are not allowed to intervene in the currency market to affect the value of their own currency.