Question 1

Table 15.1.
The Market for Francs
  
-Refer to Table 15.1.If monetary authorities fix the exchange rate at $0.30 per franc,there will be a:

Accepted Answer

A)  Shortage of 200 francs 
B)  Shortage of 400 francs 
C)  Surplus of 200 francs 
D)  Surplus of 400 francs 
A)  Shortage of 200 francs 
B)  Shortage of 400 francs 
C)  Surplus of 200 francs 
D)  Surplus of 400 francs

Question 2

What is the difference between the crawling peg and adjustable pegged exchange rates?

Accepted Answer

Under the adjustable peg,currencies are

Question 3

Members of the International Monetary Fund agree that

Accepted Answer

A) their exchange rate systems should not be manipulated to gain unfair competitive advantages over other members 
B) their exchange rate systems should not be manipulated to prevent effective balance-of-payments adjustments 
C) members countries can act to counter short-term disorderly conditions in foreign exchange markets 
D) all of the above 
A) their exchange rate systems should not be manipulated to gain unfair competitive advantages over other members 
B) their exchange rate systems should not be manipulated to prevent effective balance-of-payments adjustments 
C) members countries can act to counter short-term disorderly conditions in foreign exchange markets 
D) all of the above

Question 4

Given a two-country world,assume Canada and Sweden devalue their currencies by 20 percent.This would result in:

Accepted Answer

A)  An appreciation in the Canadian currency 
B)  An appreciation in the Swedish currency 
C)  An appreciation in both currencies 
D)  An appreciation in neither currency 
A)  An appreciation in the Canadian currency 
B)  An appreciation in the Swedish currency 
C)  An appreciation in both currencies 
D)  An appreciation in neither currency

Question 5

Today,fixed exchange rates are used primarily by small,developing countries that tie their currencies to a key currency such as the U.S.dollar.

Accepted Answer

A) True 
 B)False

Question 6

In recent years,the United States has accused China of manipulating the yuan so as to gain an unfair competitive advantage in global trade.The United States has argued that the central bank of China has

Accepted Answer

A)  sold yuan and bought dollars,thus depreciating the yuan against the dollar 
B)  sold yuan and bought dollars,thus appreciating the yuan against the dollar 
C)  bought yuan and sold dollars,thus depreciating the yuan against the dollar 
D)  bought yuan and sold dollars,thus appreciating the yuan against the dollar 
A)  sold yuan and bought dollars,thus depreciating the yuan against the dollar 
B)  sold yuan and bought dollars,thus appreciating the yuan against the dollar 
C)  bought yuan and sold dollars,thus depreciating the yuan against the dollar 
D)  bought yuan and sold dollars,thus appreciating the yuan against the dollar

Question 7

In 1973 the major industrial countries terminated managed-floating exchange rates and adopted an adjustable-pegged exchange rates.

Accepted Answer

A) True 
 B)False

Question 8

Under a system of floating exchange rates,a U.S.trade deficit with Japan will cause:

Accepted Answer

A)  A flow of gold from the United States to Japan 
B)  The U.S.government to ration yen to U.S.importers 
C)  An increase in the dollar price of yen 
D)  A decrease in the dollar price of yen 
A)  A flow of gold from the United States to Japan 
B)  The U.S.government to ration yen to U.S.importers 
C)  An increase in the dollar price of yen 
D)  A decrease in the dollar price of yen

Table 15.1. The Market for Francs -Refer to Table 15.1.If monetary authorities fix the exchange rate at $0.30 per franc,there will be a:

What is the difference between the crawling peg and adjustable pegged exchange rates?

Members of the International Monetary Fund agree that

Given a two-country world,assume Canada and Sweden devalue their currencies by 20 percent.This would result in:

Today,fixed exchange rates are used primarily by small,developing countries that tie their currencies to a key currency such as the U.S.dollar.

In recent years,the United States has accused China of manipulating the yuan so as to gain an unfair competitive advantage in global trade.The United States has argued that the central bank of China has

In 1973 the major industrial countries terminated managed-floating exchange rates and adopted an adjustable-pegged exchange rates.

Under a system of floating exchange rates,a U.S.trade deficit with Japan will cause:

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance-of-payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance-of-payments

Macroeconomic Policy in an Open-economy

International Banking: Reserves, Debt, and Risk

Filters

Exam 15: Exchange Rate Systems and Currency Crises

Table 15.1. The Market for Francs -Refer to Table 15.1.If monetary authorities fix the exchange rate at $0.30 per franc,there will be a:

What is the difference between the crawling peg and adjustable pegged exchange rates?

Members of the International Monetary Fund agree that

Given a two-country world,assume Canada and Sweden devalue their currencies by 20 percent.This would result in:

Today,fixed exchange rates are used primarily by small,developing countries that tie their currencies to a key currency such as the U.S.dollar.

In recent years,the United States has accused China of manipulating the yuan so as to gain an unfair competitive advantage in global trade.The United States has argued that the central bank of China has

In 1973 the major industrial countries terminated managed-floating exchange rates and adopted an adjustable-pegged exchange rates.

Under a system of floating exchange rates,a U.S.trade deficit with Japan will cause:

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance-of-payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance-of-payments

Macroeconomic Policy in an Open-economy

International Banking: Reserves, Debt, and Risk

Filters