Exam 36: The International Monetary System: Order or Disorder?

The Bretton Woods agreements in 1944

Under a gold standard, a balance of payments surplus automatically

In 2001, the Argentine peso was overvalued relative to the U.S.dollar.

Countries experiencing balance of payments surpluses are usually eager to inflate their economies.

A country devaluing its currency reduces the official value of its currency.

Everything else being equal, one can expect the euro to appreciate relative to the dollar if

An important effect of foreign currency speculators is that

If a country is in a major recessionary phase of the business cycle, one can expect that its currency will

Differentiate between the current account balance and the capital account balance.

Under the gold standard,

The gold standard prevented a nation from controlling its domestic economy through monetary policy.

Lately, the Chinese authorities seem to be backing away from ____ and the Yuan has ____ relative to the dollar.

A country running a balance of payments surplus in a fixed exchange rate system may have to ____ its currency.

Which of the following do most economists consider to be the most basic measure of a nation's international transactions?

If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to

When goods or services cross international borders

The gold standard established fixed exchange rates among all countries.

A fixed exchange rate system encourages speculators to attack weaker currencies.

If the dollar depreciates relative to other currencies, which of the following is true?

Exchange rates in what is termed the "medium run"