Exam 2: The International Monetary System

Which of the following is NOT an argument against dollarization?

Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology.Under this system,countries with "fixed exchange rates" are considered to have:

The following are examples of degrees of internationalization of an international currency EXCEPT:

Which of the following is NOT an attribute of the "ideal" currency?

In January 2000 Ecuador officially replaced its national currency,the Ecuadorian sucre,with the U.S.dollar.This practice is known as:

According to the terminology associated with changes in currency values,depreciation is a case when a currency's value relative to other currencies is changed by a government.

Explain how all exchange rate regimes must deal with the trade-off between rules and discretion,as well as between cooperation and independence.List and classified two International Monetary Systems based on these four quadrants.

For the three years from early 2002 to early 2005,the euro maintained a strong and steady rise in value against the U.S.dollar (USD).After a brief respite in 2005,the euro continued its climb against the USD into 2008.Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?

Beginning in 1991 Argentina conducted its monetary policy through a currency board.In January 2002,Argentina abandoned the currency board and allowed its currency to float against other currencies.The country took this step because:

Although the contemporary international monetary system is typically referred to as a "floating regime," it is clearly not the case for the majority of the world's nations.

List and explain the three attributes (often referred as the impossible trinity)an ideal currency would possess if existed in today's world.

Bretton Woods required less in the way of cooperation among countries than did the gold standard.

Which of the following is NOT a required convergence criteria to become a full member of the European Economic and Monetary Union (EMU)?

Which of the following led to the eventual demise of the fixed currency exchange rate regime worked out at Bretton Woods?

Regime structures like the gold standard required no cooperative policies among countries,only the assurance that all would abide by the "rules of the game."

Today,the United States has been ejected from the International Monetary Fund for refusal to pay annual dues.

In January 2002,the Argentine Peso changed in value from Peso1.00/$ to Peso1.40/$,thus,the Argentine Peso ________ against the U.S.dollar.

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

The International Monetary Fund (IMF):

The members of the EU do have relative freedom to set their own fiscal policies- government spending,taxation,and the creation of government surpluses or deficits.They are expected to keep deficit spending within limits.