Exam 3: The International Monetary System

The drop in value of a currency pegged to gold or another currency is known as ________.

________ are domestic currencies of one country on deposit in a second country.

Which of the following correctly identifies exchange rate regimes from less fixed to more fixed?

The IMFs exchange rate regime classification identifies ________ as the most rigidly fixed, and ________ as the least fixed.

On September 9, 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as ________.

A country that regulates the rate at which its currency is exchanged for all other currencies is considered to have a ________ exchange rate system.

Most Western nations were on the gold standard for currency exchange rates from 1876 until 1914. Today we have several different exchange rate regimes in use, but most larger economy nations have freely floating exchange rates today and are not obligated to convert their currency into a predetermined amount of gold on demand. Occasionally several parties still call for the "good old days" and a return to the gold standard. Develop an argument as to why this is a good idea.

A bank holiday

A speculative technique whereby the speculator sells an asset that he/she doesn't own, such as a currency, to another party for delivery at a future date is called ________.

Under a fixed exchange rate regime, the government of the country is officially responsible for

Based on the premise that, other things equal, countries would prefer a fixed exchange rate, which of the following statements is NOT true?

In January 2002, the Argentine Peso was officially valued at a rate of Peso1.40/USD. More recently the exchange rate is Peso 3.10/USD, thus, the Argentine Peso ________ against the U.S. dollar.

A special Drawing Right is a unit of account established by

A ________ currency is expected to devalue or depreciate relative to major currencies.

Which of the following groups of countries have replaced their individual currencies with the Euro?

The United States currently uses a ________ exchange rate regime.

What was the annualized forward premium on the pound if the spot rate on January 20, 2005 was £0.5156$ and the 180 day forward rate was £0.5000/$?

For at least two years from early 2006 to early 2008, the euro maintained a strong and steady rise in value against the U.S. dollar (USD). Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?

Which of the following is NOT an argument against dollarization?

The post WWII international monetary agreement that was developed in 1944 is known as the ________.