Question 1

The pillars of the international monetary system continue to be the __________ and the World Bank.

Accepted Answer

A) International Monetary Fund 
B) International Trade Organization 
C) Organization of Petroleum Exporting Countries 
D) World Trade Organization 
A) International Monetary Fund 
B) International Trade Organization 
C) Organization of Petroleum Exporting Countries 
D) World Trade Organization

Question 2

Because the U.S.economy no longer held the overwhelming dominance it had in 1944,the United States dropped the __________ in the 1970s.

Accepted Answer

A) gold economy 
B) platinum standard 
C) gold standard 
D) exchange rate 
A) gold economy 
B) platinum standard 
C) gold standard 
D) exchange rate

Question 3

The IMF established __________ as the replacement for gold as a world standard.

Accepted Answer

A) the Special Drawing Right 
B) silver 
C) floating exchange rates 
D) international exchange coins 
A) the Special Drawing Right 
B) silver 
C) floating exchange rates 
D) international exchange coins

Question 4

The principle determinant of the long-term value of a state's currency is __________.

Accepted Answer

A) speculation in global currency markets 
B) its fiscal health during economic crises 
C) whether it incurs a trade surplus or deficit 
D) the supply and demand of the currency 
A) speculation in global currency markets 
B) its fiscal health during economic crises 
C) whether it incurs a trade surplus or deficit 
D) the supply and demand of the currency

Question 5

An example of a U.S.-based MNC bending to pressure from the U.S.government regarding foreign direct investment is __________.

Accepted Answer

A) Chevron in Angola 
B) Unocal in Afghanistan 
C) TotalFinaElf in Nigeria 
D) Conoco in Iran 
A) Chevron in Angola 
B) Unocal in Afghanistan 
C) TotalFinaElf in Nigeria 
D) Conoco in Iran

Question 6

The targets of most foreign direct investment in the world are __________.

Accepted Answer

A) Western industrialized states 
B) OPEC members 
C) states in the global South 
D) Asia and the Pacific 
A) Western industrialized states 
B) OPEC members 
C) states in the global South 
D) Asia and the Pacific

Question 7

Many states will bridge the gap between floating and fixed exchange rates by periodically intervening in the currency markets,usually to promote stability.This type of intervention is called a(n)__________ system.

Accepted Answer

A) interventionist 
B) periodic float 
C) primary float 
D) managed float 
A) interventionist 
B) periodic float 
C) primary float 
D) managed float

Question 8

How does the International Monetary Fund (IMF)compare with the World Bank?

Accepted Answer

A) The IMF works to balance international payments,whereas the World Bank works to balance national accounts. 
B) The IMF coordinates international currency exchange and the balance of international payments,whereas the World Bank provides development loans to developing countries. 
C) The IMF has states as members,whereas the World Bank has regional banks such as the European Bank for Reconstruction and Development as members. 
D) The IMF prefers the operation of multinational corporations across borders,whereas the World Bank prefers the operation of national companies across borders. 
A) The IMF works to balance international payments,whereas the World Bank works to balance national accounts. 
B) The IMF coordinates international currency exchange and the balance of international payments,whereas the World Bank provides development loans to developing countries. 
C) The IMF has states as members,whereas the World Bank has regional banks such as the European Bank for Reconstruction and Development as members. 
D) The IMF prefers the operation of multinational corporations across borders,whereas the World Bank prefers the operation of national companies across borders.

Question 9

The most important types of multinational corporations are __________ corporations.

Accepted Answer

A) financial 
B) industrial 
C) service 
D) agricultural 
A) financial 
B) industrial 
C) service 
D) agricultural

Question 10

The __________ is the interest rate that the government charges when it loans money to private banks.

Accepted Answer

The answer of The __________ is the interest rate that...

Question 11

What is the approximate amount of the United States' national debt today?

Accepted Answer

A) $1 trillion 
B) $5 trillion 
C) $18 trillion 
D) $36 trillion 
A) $1 trillion 
B) $5 trillion 
C) $18 trillion 
D) $36 trillion

Question 12

The 1997 Asian crisis started when currency speculators began selling off the currencies of __________.

Accepted Answer

A) China,Malaysia,the Philippines,and Taiwan 
B) Thailand,Japan,Hong Kong,and Malaysia 
C) Indonesia,Malaysia,Thailand,and the Philippines 
D) Japan,China,Taiwan,and South Korea 
A) China,Malaysia,the Philippines,and Taiwan 
B) Thailand,Japan,Hong Kong,and Malaysia 
C) Indonesia,Malaysia,Thailand,and the Philippines 
D) Japan,China,Taiwan,and South Korea

Question 13

Capital goods are products that can be used as __________ for further production.

Accepted Answer

A) extractions 
B) loans 
C) inputs 
D) standing 
A) extractions 
B) loans 
C) inputs 
D) standing

Question 14

A state in which a foreign MNC operates is called the __________ country,whereas the state where the MNC has its headquarters is called the __________ country.

Accepted Answer

A) subsidiary,headquarters 
B) host,home 
C) home,host 
D) investor,investing 
A) subsidiary,headquarters 
B) host,home 
C) home,host 
D) investor,investing

Question 15

The Bretton Woods system __________.

Accepted Answer

A) was closely tied to Mexican leadership 
B) was based on a mixture of economic liberalism and protectionism 
C) included the "gold standard" 
D) was designed to diffuse global economic unity 
A) was closely tied to Mexican leadership 
B) was based on a mixture of economic liberalism and protectionism 
C) included the "gold standard" 
D) was designed to diffuse global economic unity

Question 16

International debt results from a protracted imbalance in capital flows-a state borrowing more than it lends-to cover a chronic trade deficit or government budget deficit.

Accepted Answer

A) True 
 B)False

Question 17

Except for 19 states that share the euro,each state uses its own currency,which has no inherent value.

Accepted Answer

A) True 
 B)False

Question 18

The system established after World War II to manage the world economy was the __________.

Accepted Answer

A) World Trade Organization 
B) Bretton Woods system 
C) International Monetary Fund 
D) World Bank 
A) World Trade Organization 
B) Bretton Woods system 
C) International Monetary Fund 
D) World Bank

Question 19

Foreign direct investment in Russia,Bolivia,and Venezuela dropped significantly after the host country __________ foreign assets.

Accepted Answer

nationaliz

Question 20

On average,what has the annual inflation rate of the industrialized Western states been over the past three decades?

Accepted Answer

A) around 15 percent 
B) around 50 percent 
C) around 5 percent 
D) around 10 percent 
A) around 15 percent 
B) around 50 percent 
C) around 5 percent 
D) around 10 percent

The pillars of the international monetary system continue to be the __________ and the World Bank.

Because the U.S.economy no longer held the overwhelming dominance it had in 1944,the United States dropped the __________ in the 1970s.

The IMF established __________ as the replacement for gold as a world standard.

The principle determinant of the long-term value of a state's currency is __________.

An example of a U.S.-based MNC bending to pressure from the U.S.government regarding foreign direct investment is __________.

The targets of most foreign direct investment in the world are __________.

Many states will bridge the gap between floating and fixed exchange rates by periodically intervening in the currency markets,usually to promote stability.This type of intervention is called a(n)__________ system.

How does the International Monetary Fund (IMF)compare with the World Bank?

The most important types of multinational corporations are __________ corporations.

The __________ is the interest rate that the government charges when it loans money to private banks.

What is the approximate amount of the United States' national debt today?

The 1997 Asian crisis started when currency speculators began selling off the currencies of __________.

Capital goods are products that can be used as __________ for further production.

A state in which a foreign MNC operates is called the country,whereas the state where the MNC has its headquarters is called the country.

The Bretton Woods system __________.

International debt results from a protracted imbalance in capital flows-a state borrowing more than it lends-to cover a chronic trade deficit or government budget deficit.

Except for 19 states that share the euro,each state uses its own currency,which has no inherent value.

The system established after World War II to manage the world economy was the __________.

Foreign direct investment in Russia,Bolivia,and Venezuela dropped significantly after the host country __________ foreign assets.

On average,what has the annual inflation rate of the industrialized Western states been over the past three decades?

The Globalization of International Relations

Realist Theories

Liberal and Social Theories

Foreign Policy

International Conflict

Military Force and Terrorism

International Organization, Law, and Human Rights

International Trade

International Integration

Environment and Population

The North-South Gap

International Development

Filters

Exam 9: Global Finance and Business

The pillars of the international monetary system continue to be the __________ and the World Bank.

Because the U.S.economy no longer held the overwhelming dominance it had in 1944,the United States dropped the __________ in the 1970s.

The IMF established __________ as the replacement for gold as a world standard.

The principle determinant of the long-term value of a state's currency is __________.

An example of a U.S.-based MNC bending to pressure from the U.S.government regarding foreign direct investment is __________.

The targets of most foreign direct investment in the world are __________.

Many states will bridge the gap between floating and fixed exchange rates by periodically intervening in the currency markets,usually to promote stability.This type of intervention is called a(n)__________ system.

How does the International Monetary Fund (IMF)compare with the World Bank?

The most important types of multinational corporations are __________ corporations.

The __________ is the interest rate that the government charges when it loans money to private banks.

What is the approximate amount of the United States' national debt today?

The 1997 Asian crisis started when currency speculators began selling off the currencies of __________.

Capital goods are products that can be used as __________ for further production.

A state in which a foreign MNC operates is called the __________ country,whereas the state where the MNC has its headquarters is called the __________ country.

The Bretton Woods system __________.

International debt results from a protracted imbalance in capital flows-a state borrowing more than it lends-to cover a chronic trade deficit or government budget deficit.

Except for 19 states that share the euro,each state uses its own currency,which has no inherent value.

The system established after World War II to manage the world economy was the __________.

Foreign direct investment in Russia,Bolivia,and Venezuela dropped significantly after the host country __________ foreign assets.

On average,what has the annual inflation rate of the industrialized Western states been over the past three decades?

The Globalization of International Relations

Realist Theories

Liberal and Social Theories

Foreign Policy

International Conflict

Military Force and Terrorism

International Organization, Law, and Human Rights

International Trade

International Integration

Environment and Population

The North-South Gap

International Development

Filters

A state in which a foreign MNC operates is called the country,whereas the state where the MNC has its headquarters is called the country.