Question 1

Which of the following is a factor that initiated the collapse of the fixed exchange rate system?

Accepted Answer

A)  Worsening of Great Britain's balance of trade 
B)  Recession in third world countries 
C)  Price inflation in Europe 
D)  Worsening of U.S.foreign trade position 
A)  Worsening of Great Britain's balance of trade 
B)  Recession in third world countries 
C)  Price inflation in Europe 
D)  Worsening of U.S.foreign trade position

Question 2

How does a fixed exchange rate system work?

Accepted Answer

In a fixed exchange rate system,the valu

Question 3

Gold par value refers to the _____.

Accepted Answer

A)  ratio of price of gold in a currency to price of gold in U.S.dollars 
B)  amount of a currency needed to purchase one ounce of gold 
C)  ratio of price of gold in a currency to price of gold in euros 
D)  amount of gold required to equal the reference currency that a nation is using 
A)  ratio of price of gold in a currency to price of gold in U.S.dollars 
B)  amount of a currency needed to purchase one ounce of gold 
C)  ratio of price of gold in a currency to price of gold in euros 
D)  amount of gold required to equal the reference currency that a nation is using

Question 4

The quality of investments declined significantly in the Asian countries during the 1990s.

Accepted Answer

A) True 
 B)False

Question 5

Gold was declared as the formal reserve asset in the Jamaica agreement of 1976.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an advantage of using the gold standard?

Accepted Answer

A)  The standard makes sure that goods are not priced out from markets due to inflation. 
B)  The standard does not require a commitment from nations to maintain its currency's value. 
C)  The standard effectively prevents the devaluation of currencies across the world. 
D)  It contains a powerful mechanism for achieving balance-of-trade equilibrium by all countries. 
A)  The standard makes sure that goods are not priced out from markets due to inflation. 
B)  The standard does not require a commitment from nations to maintain its currency's value. 
C)  The standard effectively prevents the devaluation of currencies across the world. 
D)  It contains a powerful mechanism for achieving balance-of-trade equilibrium by all countries.

Question 7

The IMF made pegging Mexican peso to the dollar,a condition for lending money to the Mexican government in the 1980s.

Accepted Answer

A) True 
 B)False

Question 8

Recent policies of the IMF have drawn a lot of criticism.Discuss these criticisms.

Accepted Answer

The IMF's policies designed to cool over

Question 9

Which of the following is an exchange rate policy where the exchange rate is determined completely by market forces?

Accepted Answer

A)  Managed float 
B)  Fixed peg 
C)  Free float 
D)  Currency board 
A)  Managed float 
B)  Fixed peg 
C)  Free float 
D)  Currency board

Question 10

Most of the loans issued by the IMF are unconditional loans.

Accepted Answer

A) True 
 B)False

Question 11

When the foreign exchange market determines the relative value of a currency,we say that the country is adhering to a _____ regime.

Accepted Answer

A)  currency board exchange 
B)  pegged exchange rate 
C)  fixed exchange rate 
D)  floating exchange rate 
A)  currency board exchange 
B)  pegged exchange rate 
C)  fixed exchange rate 
D)  floating exchange rate

Question 12

Which of the following will help a company hedge against currency fluctuations?

Accepted Answer

A)  Finding a large supplier to supply all the raw materials 
B)  In-house manufacturing of raw materials 
C)  Basing business in a single country 
D)  Dispersing production to different geographic locations 
A)  Finding a large supplier to supply all the raw materials 
B)  In-house manufacturing of raw materials 
C)  Basing business in a single country 
D)  Dispersing production to different geographic locations

Question 13

United States had large and growing trade deficit between 1980 and 1985.Despite this,the value of U.S.dollar rose during this period.Which of the following is a factor that caused this occurrence?

Accepted Answer

A)  United States attracted heavy inflows of capital from foreign investors during this period. 
B)  Banks in the United States offered low interest rates to investors during this period. 
C)  Markets across the world witnessed strong economies during this period. 
D)  Developed countries in Europe maintained trade equilibrium and supplied goods to underdeveloped countries. 
A)  United States attracted heavy inflows of capital from foreign investors during this period. 
B)  Banks in the United States offered low interest rates to investors during this period. 
C)  Markets across the world witnessed strong economies during this period. 
D)  Developed countries in Europe maintained trade equilibrium and supplied goods to underdeveloped countries.

Question 14

What is gold standard? What was the major advantage of the system?

Accepted Answer

Pegging currencies to gold and guarantee

Question 15

IMF members were permitted to sell their own gold reserves at the market price in the Jamaica agreement.

Accepted Answer

A) True 
 B)False

Question 16

_____ exchange rates were declared as acceptable in the Jamaica agreement of IMF.

Accepted Answer

A)  Pegged 
B)  Fixed 
C)  Floating 
D)  Gold standard 
A)  Pegged 
B)  Fixed 
C)  Floating 
D)  Gold standard

Question 17

The international monetary system refers to the institutional arrangements that govern exchange rates.

Accepted Answer

A) True 
 B)False

Question 18

Present the common arguments that favor fixed exchange rates.

Accepted Answer

The case for fixed exchange rates revolv

Question 19

Government projects were a factor behind the investment boom in most Southeast Asian economies.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a function of World Bank?

Accepted Answer

A)  Implementing a rigid fixed exchange rate regime 
B)  Promoting gold standard across the world 
C)  Lending money to governments for development 
D)  Implementing a flexible fixed exchange rate regime 
A)  Implementing a rigid fixed exchange rate regime 
B)  Promoting gold standard across the world 
C)  Lending money to governments for development 
D)  Implementing a flexible fixed exchange rate regime

Which of the following is a factor that initiated the collapse of the fixed exchange rate system?

How does a fixed exchange rate system work?

Gold par value refers to the _____.

The quality of investments declined significantly in the Asian countries during the 1990s.

Gold was declared as the formal reserve asset in the Jamaica agreement of 1976.

Which of the following is an advantage of using the gold standard?

The IMF made pegging Mexican peso to the dollar,a condition for lending money to the Mexican government in the 1980s.

Recent policies of the IMF have drawn a lot of criticism.Discuss these criticisms.

Which of the following is an exchange rate policy where the exchange rate is determined completely by market forces?

Most of the loans issued by the IMF are unconditional loans.

When the foreign exchange market determines the relative value of a currency,we say that the country is adhering to a _____ regime.

Which of the following will help a company hedge against currency fluctuations?

United States had large and growing trade deficit between 1980 and 1985.Despite this,the value of U.S.dollar rose during this period.Which of the following is a factor that caused this occurrence?

What is gold standard? What was the major advantage of the system?

IMF members were permitted to sell their own gold reserves at the market price in the Jamaica agreement.

_____ exchange rates were declared as acceptable in the Jamaica agreement of IMF.

The international monetary system refers to the institutional arrangements that govern exchange rates.

Present the common arguments that favor fixed exchange rates.

Government projects were a factor behind the investment boom in most Southeast Asian economies.

Which of the following is a function of World Bank?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

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Exam 11: The International Monetary System

Which of the following is a factor that initiated the collapse of the fixed exchange rate system?

How does a fixed exchange rate system work?

Gold par value refers to the _____.

The quality of investments declined significantly in the Asian countries during the 1990s.

Gold was declared as the formal reserve asset in the Jamaica agreement of 1976.

Which of the following is an advantage of using the gold standard?

The IMF made pegging Mexican peso to the dollar,a condition for lending money to the Mexican government in the 1980s.

Recent policies of the IMF have drawn a lot of criticism.Discuss these criticisms.

Which of the following is an exchange rate policy where the exchange rate is determined completely by market forces?

Most of the loans issued by the IMF are unconditional loans.

When the foreign exchange market determines the relative value of a currency,we say that the country is adhering to a _____ regime.

Which of the following will help a company hedge against currency fluctuations?

United States had large and growing trade deficit between 1980 and 1985.Despite this,the value of U.S.dollar rose during this period.Which of the following is a factor that caused this occurrence?

What is gold standard? What was the major advantage of the system?

IMF members were permitted to sell their own gold reserves at the market price in the Jamaica agreement.

_____ exchange rates were declared as acceptable in the Jamaica agreement of IMF.

The international monetary system refers to the institutional arrangements that govern exchange rates.

Present the common arguments that favor fixed exchange rates.

Government projects were a factor behind the investment boom in most Southeast Asian economies.

Which of the following is a function of World Bank?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters