Question 1

The Bank of England no longer redeemed British paper currency for gold at par value ________.

Accepted Answer

A)  in the 1920s 
B)  in the 1850s 
C)  before 1821 
D)  after 1931 
A)  in the 1920s 
B)  in the 1850s 
C)  before 1821 
D)  after 1931

Question 2

The international monetary system provides a mechanism for ________.

Accepted Answer

A)  establishing global accounting standards 
B)  enforcing the payment of importing tariffs and fees 
C)  correcting imbalances between a country's international payments and receipts 
D)  increasing a country's paper currency value in comparison to the global gold standard 
A)  establishing global accounting standards 
B)  enforcing the payment of importing tariffs and fees 
C)  correcting imbalances between a country's international payments and receipts 
D)  increasing a country's paper currency value in comparison to the global gold standard

Question 3

Under the gold standard ________.

Accepted Answer

A)  currency values were determined by supply and demand 
B)  countries agreed to buy or sell their paper currencies for gold 
C)  countries were free to adopt any nation's exchange rate system 
D)  the dollar's value was allowed to fall on currency markets 
A)  currency values were determined by supply and demand 
B)  countries agreed to buy or sell their paper currencies for gold 
C)  countries were free to adopt any nation's exchange rate system 
D)  the dollar's value was allowed to fall on currency markets

Question 4

Platinum was used as a medium of international exchange in ancient times because of its strength and value.

Accepted Answer

A) True 
 B)False

Question 5

Under a ________, the price of a given currency does not change relative to other currency.

Accepted Answer

A)  free trade agreement 
B)  fixed exchange rate system 
C)  floating exchange rate system 
D)  balance of payment system 
A)  free trade agreement 
B)  fixed exchange rate system 
C)  floating exchange rate system 
D)  balance of payment system

Question 6

Which of the following is not a form of asset included in the official reserves account?

Accepted Answer

A)  government bonds 
B)  convertible currencies 
C)  special drawing rights 
D)  reserve positions at the IMF 
A)  government bonds 
B)  convertible currencies 
C)  special drawing rights 
D)  reserve positions at the IMF

Question 7

The Bretton Woods conference sought to do all of the following EXCEPT ________.

Accepted Answer

A)  renew the gold standard 
B)  create the International Monetary Fund 
C)  create the International Bank for Reconstruction and Development 
D)  provide no-interest capital loans to emerging economies around the world 
A)  renew the gold standard 
B)  create the International Monetary Fund 
C)  create the International Bank for Reconstruction and Development 
D)  provide no-interest capital loans to emerging economies around the world

Question 8

How would you record earnings of a Pakistani-born resident of Kuwait that are sent home to relatives in the balance of payments?

Accepted Answer

The transaction would be recor

Question 9

A country's BOP provides detailed information on the nation's debt payments and associated interest rates that can be used when making economic policy changes.

Accepted Answer

A) True 
 B)False

Question 10

What is the primary purpose of the International Finance Corporation?

Accepted Answer

A)  make soft loans 
B)  make hard loans 
C)  promote private sector development in developing countries 
D)  provide political risk insurance to MNEs operating in emerging economies 
A)  make soft loans 
B)  make hard loans 
C)  promote private sector development in developing countries 
D)  provide political risk insurance to MNEs operating in emerging economies

Question 11

Unilateral transfers are recorded in the capital account of the balance of payments.

Accepted Answer

A) True 
 B)False

Question 12

Todd, an analyst for the U.S. government, has been given the task of assessing the economic performance of Country X in the international marketplace. Todd will most likely review the ________ of Country X.

Accepted Answer

A)  BOP statistics 
B)  IMF quotas 
C)  portfolios 
D)  FDI 
A)  BOP statistics 
B)  IMF quotas 
C)  portfolios 
D)  FDI

Question 13

What was the initial goal of the World Bank?

Accepted Answer

A)  administer the gold standard 
B)  hold financial reserves for all countries 
C)  finance reconstruction of war-torn economies 
D)  provide capital for corporate expansion activities 
A)  administer the gold standard 
B)  hold financial reserves for all countries 
C)  finance reconstruction of war-torn economies 
D)  provide capital for corporate expansion activities

Question 14

A member country of the IMF may borrow up to 25 percent of its quota from the IMF.

Accepted Answer

A) True 
 B)False

Question 15

Japan holds the largest bloc of votes in the World Bank.

Accepted Answer

A) True 
 B)False

Question 16

What was the Brady Plan?

Accepted Answer

The Brady Plan, which came about in 1989

Question 17

What was the Baker Plan?

Accepted Answer

The 1985 Baker Plan was an effort to res

Question 18

Do you think the breakdown of the international monetary system and international trade after World War I influenced the occurrence of World War II? Why or why not?

Accepted Answer

It created inflation and unemp

Question 19

Assume you are an American exporter in 1895. What currency would you most likely want to receive for business transactions?

Accepted Answer

A)  U.S. dollar 
B)  British pound sterling 
C)  German deutschmark 
D)  French franc 
A)  U.S. dollar 
B)  British pound sterling 
C)  German deutschmark 
D)  French franc

Question 20

The balance of payments is useful to international business people for all of the following reasons except ________.

Accepted Answer

A)  warning of new policies that could affect a country's business climate 
B)  indicating reductions in a country's foreign exchange reserves 
C)  signaling increased riskiness of lending to countries 
D)  predicting future exchange rates 
A)  warning of new policies that could affect a country's business climate 
B)  indicating reductions in a country's foreign exchange reserves 
C)  signaling increased riskiness of lending to countries 
D)  predicting future exchange rates

The Bank of England no longer redeemed British paper currency for gold at par value ________.

The international monetary system provides a mechanism for ________.

Under the gold standard ________.

Platinum was used as a medium of international exchange in ancient times because of its strength and value.

Under a ________, the price of a given currency does not change relative to other currency.

Which of the following is not a form of asset included in the official reserves account?

The Bretton Woods conference sought to do all of the following EXCEPT ________.

How would you record earnings of a Pakistani-born resident of Kuwait that are sent home to relatives in the balance of payments?

A country's BOP provides detailed information on the nation's debt payments and associated interest rates that can be used when making economic policy changes.

What is the primary purpose of the International Finance Corporation?

Unilateral transfers are recorded in the capital account of the balance of payments.

Todd, an analyst for the U.S. government, has been given the task of assessing the economic performance of Country X in the international marketplace. Todd will most likely review the ________ of Country X.

What was the initial goal of the World Bank?

A member country of the IMF may borrow up to 25 percent of its quota from the IMF.

Japan holds the largest bloc of votes in the World Bank.

What was the Brady Plan?

What was the Baker Plan?

Do you think the breakdown of the international monetary system and international trade after World War I influenced the occurrence of World War II? Why or why not?

Assume you are an American exporter in 1895. What currency would you most likely want to receive for business transactions?

The balance of payments is useful to international business people for all of the following reasons except ________.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 7: The International Monetary System and the Balance of Payments

The Bank of England no longer redeemed British paper currency for gold at par value ________.

The international monetary system provides a mechanism for ________.

Under the gold standard ________.

Platinum was used as a medium of international exchange in ancient times because of its strength and value.

Under a ________, the price of a given currency does not change relative to other currency.

Which of the following is not a form of asset included in the official reserves account?

The Bretton Woods conference sought to do all of the following EXCEPT ________.

How would you record earnings of a Pakistani-born resident of Kuwait that are sent home to relatives in the balance of payments?

A country's BOP provides detailed information on the nation's debt payments and associated interest rates that can be used when making economic policy changes.

What is the primary purpose of the International Finance Corporation?

Unilateral transfers are recorded in the capital account of the balance of payments.

Todd, an analyst for the U.S. government, has been given the task of assessing the economic performance of Country X in the international marketplace. Todd will most likely review the ________ of Country X.

What was the initial goal of the World Bank?

A member country of the IMF may borrow up to 25 percent of its quota from the IMF.

Japan holds the largest bloc of votes in the World Bank.

What was the Brady Plan?

What was the Baker Plan?

Do you think the breakdown of the international monetary system and international trade after World War I influenced the occurrence of World War II? Why or why not?

Assume you are an American exporter in 1895. What currency would you most likely want to receive for business transactions?

The balance of payments is useful to international business people for all of the following reasons except ________.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters