Question 1

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 2

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

Accepted Answer

A)  exchange rate 
B)  fiscal 
C)  commercial liberalism 
D)  monetary 
A)  exchange rate 
B)  fiscal 
C)  commercial liberalism 
D)  monetary

Question 3

One phase of the Crisis of 2008 was _____.

Accepted Answer

A)  arbitrage 
B)  capital controls 
C)  displacement 
D)  underinflation 
A)  arbitrage 
B)  capital controls 
C)  displacement 
D)  underinflation

Question 4

International organizations such as the IMF and World Bank often attach "strings" to financial assistance, known as Structural Adjustment Policies (SAPs).

Accepted Answer

A) True 
 B)False

Question 5

Foreign direct investment refers to

Accepted Answer

A)  purchasing significant amounts of a foreign country's currency. 
B)  purchasing substantial shares of a foreign company's stock or setting up production facilities in another country. 
C)  the purchase of large amounts of overseas goods; e.g., Wal-Mart purchases many of their products from China. 
D)  sales of military armaments to foreign governments. 
A)  purchasing significant amounts of a foreign country's currency. 
B)  purchasing substantial shares of a foreign company's stock or setting up production facilities in another country. 
C)  the purchase of large amounts of overseas goods; e.g., Wal-Mart purchases many of their products from China. 
D)  sales of military armaments to foreign governments.

Question 6

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

Myriad economic and political factors ca

Question 7

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

Accepted Answer

A)  States are forced to closely monitor their fiscal and monetary policies to avoid balance of payment deficits and inflation. 
B)  Total debt levels decreased. 
C)  Inflation increased throughout Global North countries. 
D)  Currency exchanges to a system of floating exchange rates. 
A)  States are forced to closely monitor their fiscal and monetary policies to avoid balance of payment deficits and inflation. 
B)  Total debt levels decreased. 
C)  Inflation increased throughout Global North countries. 
D)  Currency exchanges to a system of floating exchange rates.

Question 8

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

Accepted Answer

A)  Devaluation programs 
B)  Structural Adjustment Policies (SAPs) 
C)  Capital controls 
D)  Bretton Woods programs 
A)  Devaluation programs 
B)  Structural Adjustment Policies (SAPs) 
C)  Capital controls 
D)  Bretton Woods programs

Question 9

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 
A)  monetary policy 
B)  exchange rate 
C)  fiscal policy 
D)  money supply

Question 10

The G-20 is a group of countries that meets to discuss ways to deal with financial crises.  This groups includes the G-7, the largest economies in the world, and what other group of countries?

Accepted Answer

A)  Largest emerging economies, such as Argentina and Brazil 
B)  Most trade-dependent countries, such as Jamaica and Vietnam 
C)  WTO member countries, such as Pakistan and Belize 
D)  Happiest countries, such as Finland and Sweden 
A)  Largest emerging economies, such as Argentina and Brazil 
B)  Most trade-dependent countries, such as Jamaica and Vietnam 
C)  WTO member countries, such as Pakistan and Belize 
D)  Happiest countries, such as Finland and Sweden

Question 11

Globalization is a vague term that can be used in a multitude of ways but broadly defined is the increased integration of markets, trade, finance, and technology.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Describe the Bretton Woods system.  Why did the United States leave the Bretton Woods system and adopt floating exchange rates to determine currency values?

Accepted Answer

The United States supported Liberal Inte

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

On the global currency market, over $4 trillion of currency changes hands every day.

Accepted Answer

A) True 
 B)False

Question 16

The volume of currencies traded in global market is, by necessity, exactly equal to the amount of currency that domestic governments have in reserves.

Accepted Answer

A) True 
 B)False

Question 17

Approximately how many financial crises have occurred in the world since the demise of the Bretton Woods system?

Accepted Answer

A)  7 
B)  34 
C)  71 
D)  147 
A)  7 
B)  34 
C)  71 
D)  147

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The Bretton Woods system of international economics relied on fixed exchange rates, rather than floating, to ensure stability in the world economy.

Accepted Answer

A) True 
 B)False

Question 20

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. 
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.

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

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

One phase of the Crisis of 2008 was _____.

International organizations such as the IMF and World Bank often attach "strings" to financial assistance, known as Structural Adjustment Policies (SAPs).

Foreign direct investment refers to

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 _____ .

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

The G-20 is a group of countries that meets to discuss ways to deal with financial crises. This groups includes the G-7, the largest economies in the world, and what other group of countries?

Globalization is a vague term that can be used in a multitude of ways but broadly defined is the increased integration of markets, trade, finance, and technology.

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

Describe the Bretton Woods system. Why did the United States leave the Bretton Woods system and adopt floating exchange rates to determine currency values?

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

On the global currency market, over $4 trillion of currency changes hands every day.

The volume of currencies traded in global market is, by necessity, exactly equal to the amount of currency that domestic governments have in reserves.

Approximately how many financial crises have occurred in the world since the demise of the Bretton Woods system?

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

The Bretton Woods system of international economics relied on fixed exchange rates, rather than floating, to ensure stability in the world economy.

What is the outcome of very high inflation or hyperinflation?

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

Nonstate 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

Exam 10: The Globalization of International Finance

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

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

One phase of the Crisis of 2008 was _____.

International organizations such as the IMF and World Bank often attach "strings" to financial assistance, known as Structural Adjustment Policies (SAPs).

Foreign direct investment refers to

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 _____ .

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

The G-20 is a group of countries that meets to discuss ways to deal with financial crises. This groups includes the G-7, the largest economies in the world, and what other group of countries?

Globalization is a vague term that can be used in a multitude of ways but broadly defined is the increased integration of markets, trade, finance, and technology.

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

Describe the Bretton Woods system. Why did the United States leave the Bretton Woods system and adopt floating exchange rates to determine currency values?

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

On the global currency market, over $4 trillion of currency changes hands every day.

The volume of currencies traded in global market is, by necessity, exactly equal to the amount of currency that domestic governments have in reserves.

Approximately how many financial crises have occurred in the world since the demise of the Bretton Woods system?

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

The Bretton Woods system of international economics relied on fixed exchange rates, rather than floating, to ensure stability in the world economy.

What is the outcome of very high inflation or hyperinflation?

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

Nonstate 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