Question 1

Where are the two largest stock market exchanges located?

Accepted Answer

A) Japan and Germany 
B) China 
C) the United States 
D) the United Kingdom 
A) Japan and Germany 
B) China 
C) the United States 
D) the United Kingdom

Question 2

What determines the purchasing power of a currency relative to another under floating exchange rates?

Accepted Answer

A) central banks 
B) multinational corporations 
C) market forces 
D) the World Bank 
A) central banks 
B) multinational corporations 
C) market forces 
D) the World Bank

Question 3

What condition precipitated the end of the Bretton Woods era?

Accepted Answer

A) mercantilism 
B) dollar overhang 
C) imperial overstretch 
D) embedded liberalism 
A) mercantilism 
B) dollar overhang 
C) imperial overstretch 
D) embedded liberalism

Question 4

When a mobster sets up a flower shop we might surmise that he or she does so to pursue which activity?

Accepted Answer

A) arbitrage 
B) money laundering 
C) gardening 
D) devaluation 
A) arbitrage 
B) money laundering 
C) gardening 
D) devaluation

Question 5

What term refers to financial entities outside of the formal banking structure that engage in lending and credit-issuing activities?

Accepted Answer

A) credit unions 
B) shadow banks 
C) quasi-banks 
D) lending houses 
A) credit unions 
B) shadow banks 
C) quasi-banks 
D) lending houses

Question 6

What is the outcome of very high inflation or hyperinflation?

Accepted Answer

A) The nation 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. 
A) The nation 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.

Question 7

Which of the following represents a problem that plagues cryptocurrencies such as Bitcoin or Ethereum?

Accepted Answer

A) Cryptocurrencies are not liquid. 
B) Cryptocurrencies are not easily exchanged. 
C) Cryptocurrencies cannot be used to purchase goods. 
D) Prices of cryptocurrencies may fluctuate for no reason other than flows of speculative investment. 
A) Cryptocurrencies are not liquid. 
B) Cryptocurrencies are not easily exchanged. 
C) Cryptocurrencies cannot be used to purchase goods. 
D) Prices of cryptocurrencies may fluctuate for no reason other than flows of speculative investment.

Question 8

Which characteristics do the least-globalized nations tend to share?

Accepted Answer

A) They are the largest in economic size. 
B) They are the richest and most powerful. 
C) They are the least-developed and most autocratic. 
D) They are the smallest and most dependent on trade. 
A) They are the largest in economic size. 
B) They are the richest and most powerful. 
C) They are the least-developed and most autocratic. 
D) They are the smallest and most dependent on trade.

Question 9

What are the lessons learned from the global economic collapse of the 1930s?

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) All of these are true. 
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) All of these are true.

Question 10

Which of the following advocates for free markets and the removal of barriers to the flow of trade and capital as a path to prosperity?

Accepted Answer

A) globalization 
B) commercial liberalism 
C) Bretton Woods 
D) arbitrage 
A) globalization 
B) commercial liberalism 
C) Bretton Woods 
D) arbitrage

Where are the two largest stock market exchanges located?

What determines the purchasing power of a currency relative to another under floating exchange rates?

What condition precipitated the end of the Bretton Woods era?

When a mobster sets up a flower shop we might surmise that he or she does so to pursue which activity?

What term refers to financial entities outside of the formal banking structure that engage in lending and credit-issuing activities?

What is the outcome of very high inflation or hyperinflation?

Which of the following represents a problem that plagues cryptocurrencies such as Bitcoin or Ethereum?

Which characteristics do the least-globalized nations tend to share?

What are the lessons learned from the global economic collapse of the 1930s?

Which of the following advocates for free markets and the removal of barriers to the flow of trade and capital as a path to prosperity?

Discovering World Politics

Interpreting World Politics Through the Lens of Theory

Theories of International Decision Making

Great Power Relations and Rivalries

World Politics and the Global South

Non-State Actors and the Quest for Global Community

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 and Transformations

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Exam 10: The Globalization of International Finance

Where are the two largest stock market exchanges located?

What determines the purchasing power of a currency relative to another under floating exchange rates?

What condition precipitated the end of the Bretton Woods era?

When a mobster sets up a flower shop we might surmise that he or she does so to pursue which activity?

What term refers to financial entities outside of the formal banking structure that engage in lending and credit-issuing activities?

What is the outcome of very high inflation or hyperinflation?

Which of the following represents a problem that plagues cryptocurrencies such as Bitcoin or Ethereum?

Which characteristics do the least-globalized nations tend to share?

What are the lessons learned from the global economic collapse of the 1930s?

Which of the following advocates for free markets and the removal of barriers to the flow of trade and capital as a path to prosperity?

Discovering World Politics

Interpreting World Politics Through the Lens of Theory

Theories of International Decision Making

Great Power Relations and Rivalries

World Politics and the Global South

Non-State Actors and the Quest for Global Community

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 and Transformations

Filters