Exam 14: Exchange Rate Adjustments and the Balance of Payments

By adopting a currency board, a developing country hopes to

Under a floating exchange rate system, other things equal, which of the following best leads to a depreciation in the value of the Canadian dollar?

For a developing country, a _____ can foster economic instability because it can result in a lending boom and ______ by banks, which promotes a financial crisis.

For Ecuador, an advantage of adopting the dollar as its official currency is that

Suppose that Japan maintains a pegged exchange rate that overvalues the yen.Other things equal this would likely result in

An argument can be made for controls on the outflow of capital for developing countries because capital outflows force a country to revalue its currency.

With a system of fixed exchange rates, a country that exhausts its international reserves in an attempt to keep its currency from _____ will have to ______ its currency

Under managed floating exchange rates, central bank intervention is used to offset temporary fluctuations in exchange rates that contribute to uncertainty in carrying out transactions in international trade and finance.

Other things equal, under a floating exchange rate system, if American exports decrease and American imports increase, the value of the dollar will likely

In the 2000s, the U.S.accused which of the following countries of currency manipulation?

In 1973, the reform of the international monetary system resulted in the change from

Developing nations whose trade and financial relationships are mainly with a single partner tend to utilize

A market-determined decrease in the dollar price of the pound is associated with

Suppose Sweden's inflation rate is less than that of its trading partner.Other things equal, under a floating exchange rate system Sweden would experience a/an

Countries such as Bolivia and Costa Rica have adopted crawling pegged exchange rates.Under this system, a country

Proponents of a freely floating exchange rate system maintain that it is superior to a fixed exchange rate system because it

The special drawing right is a currency basket of five major industrial country currencies.

In 1944, financial ministers throughout the world met in New Hampshire to set up an adjustable pegged exchange rate system.This system became known as the

To help insulate their economies from inflation, currency depreciation, and capital flight, developing countries have implemented

In recent years, members of the International Monetary Fund have adopted exchange rate systems including