Exam 10: International Money System

Predictable exchange rates reduce the need for ________.

The ________ holds that prices of financial instruments reflect all publicly available information at any given time.

Which of these employs statistical models based on fundamental economic indicators to forecast exchange rates?

When a government buys its own securities on the open market, ________.

Which of the following were advantages of the gold standard?

Today's international monetary system is considered a ________.

The World Bank was created by the ________.

An economic condition in which a trade deficit causes a permanent negative shift in a country's balance of payments is called ________.

When a government lowers taxes it is employing ________.

The Bretton Woods Agreement incorporated fixed exchange rates by tying the value of the ________ directly to gold and the value of other currencies to the value of the dollar.

Revaluation increases the price of ________ and reduces the price of ________.

The agency created by the Bretton Woods Agreement to provide funding for national economic development efforts is called the ________.

Devaluation lowers the price of a country's exports on world markets and increases the price of imports.

Scenario: Just-for-Kids, Inc. Just-for-Kids, Inc. is a toys and clothes manufacturer based in San Diego, California. The company has received an inquiry from an overseas company to do business. Tom Dodd is the owner of the company researching the opportunity and how exchange rates will affect its international business activities. -The government of the country that Just-for-Kids is considering doing business in just lowered the value of its currency, which is referred to as ________.

Which of the following is NOT true of the Special Drawing Right (SDR)?

Which of the following lowers the price of a country's exports on world markets and increases the price of imports?

Compare and contrast the two main techniques for forecasting exchange rates-fundamental and technical analysis.

The ________ was the 1976 agreement among International Monetary Fund members to formalize the existing system of floating exchange rates as the new international monetary system.

Proponents of the efficient market view of exchange rates believe that companies can search for new pieces of information to improve forecasting.

The ________ is an IMF asset whose value is based on a weighted basket of four currencies.