Question 1

In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

Accepted Answer

A)  More people demand the yuan domestically in China, so it is not used for imports and exports. 
B)  The dollar is the common transaction currency between the two countries. 
C)  The yuan is pegged to the US dollar. 
D)  Formal institutions and regulations demand the trade be conducted in the dollar. 
A)  More people demand the yuan domestically in China, so it is not used for imports and exports. 
B)  The dollar is the common transaction currency between the two countries. 
C)  The yuan is pegged to the US dollar. 
D)  Formal institutions and regulations demand the trade be conducted in the dollar.

Question 2

Which of the following is NOT one of the three primary activities of the International Monetary Fund?

Accepted Answer

A)  International monetary cooperation 
B)  Exchange stability 
C)  Pegging exchange rates 
D)  Orderly exchange arrangements 
A)  International monetary cooperation 
B)  Exchange stability 
C)  Pegging exchange rates 
D)  Orderly exchange arrangements

Question 3

The International Monetary Fund offers both loans and free grants to countries depending on the stability and need of the borrower.

Accepted Answer

A) True 
 B)False

Question 4

The Bretton Woods system was formed at a conference in England.

Accepted Answer

A) True 
 B)False

Question 5

Briefly explain the cause for the fall of the Bretton Woods system and identify the modern situation.

Accepted Answer

The Bretton Woods system was at its peak

Question 6

What was one of the major reasons the gold standard fell apart?

Accepted Answer

A)  Countries fighting in World War I printed excessive amounts of money to finance their war efforts. 
B)  Military campaigns during World War I stole much of the gold from foreign central banks. 
C)  Gold lost its value and was no longer reliable. 
D)  Gold became too rare and costly to maintain adequate reserves. 
A)  Countries fighting in World War I printed excessive amounts of money to finance their war efforts. 
B)  Military campaigns during World War I stole much of the gold from foreign central banks. 
C)  Gold lost its value and was no longer reliable. 
D)  Gold became too rare and costly to maintain adequate reserves.

In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

Which of the following is NOT one of the three primary activities of the International Monetary Fund?

The International Monetary Fund offers both loans and free grants to countries depending on the stability and need of the borrower.

The Bretton Woods system was formed at a conference in England.

Briefly explain the cause for the fall of the Bretton Woods system and identify the modern situation.

What was one of the major reasons the gold standard fell apart?

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing, Structuring, and Learning Around the World

Competing on Marketing and Supply Chain Management

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Exam 7: Dealing With Foreign Exchange

In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

Which of the following is NOT one of the three primary activities of the International Monetary Fund?

The International Monetary Fund offers both loans and free grants to countries depending on the stability and need of the borrower.

The Bretton Woods system was formed at a conference in England.

Briefly explain the cause for the fall of the Bretton Woods system and identify the modern situation.

What was one of the major reasons the gold standard fell apart?

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing, Structuring, and Learning Around the World

Competing on Marketing and Supply Chain Management

Filters