Question 1

The Bretton Woods System was a:

Accepted Answer

A)  gold standard 
B)  managed floating exchange rate system 
C)  gold-exchange standard 
D)  crawling peg system 
A)  gold standard 
B)  managed floating exchange rate system 
C)  gold-exchange standard 
D)  crawling peg system

Question 2

In the wake of the 2008-2009 global financial crisis the following is a potential economic problem facing the world today

Accepted Answer

A)  rising trade protection 
B)  a large U.S. balance of payments deficit 
C)  deep poverty in many developing nations 
D)  all of the above 
A)  rising trade protection 
B)  a large U.S. balance of payments deficit 
C)  deep poverty in many developing nations 
D)  all of the above

Question 3

What are the most serious economic problems facing the world today?

Accepted Answer

The danger of rising protectionism in ad

Question 4

The Bretton Woods System:

Accepted Answer

A)  allowed nation to change their par values when facing fundamental disequilibrium 
B)  allowed nations to change their par values when facing a temporary disequilibrium 
C)  did not allow nations to change their par exchange rates under any circumstance 
D)  allowed only deficit nations to change their par values, but not surplus nations 
A)  allowed nation to change their par values when facing fundamental disequilibrium 
B)  allowed nations to change their par values when facing a temporary disequilibrium 
C)  did not allow nations to change their par exchange rates under any circumstance 
D)  allowed only deficit nations to change their par values, but not surplus nations

Question 5

The International Monetary Fund was initially established to manage

Accepted Answer

A)  the Gold Standard 
B)  the Gold-Exchange Standard 
C)  the euro-dollar exchange rate 
D) the Dollarization initiative 
A)  the Gold Standard 
B)  the Gold-Exchange Standard 
C)  the euro-dollar exchange rate 
D) the Dollarization initiative

Question 6

Explain why the establishment of a freely-flexible exchange rate system is unlikely today.

Accepted Answer

Under a freely-flexible exchange rate sy

Question 7

Sterilization refers to actions taken by central banks

Accepted Answer

A)  to neutralize the effects of balance of payments disequilibria on the money supply. 
B)  to increase gold inflows when there is a balance of payments surplus. 
C)  to decrease gold outflows when there is a balance of payments surplus. 
D)  to cause the exchange rate to appreciate or depreciate. 
A)  to neutralize the effects of balance of payments disequilibria on the money supply. 
B)  to increase gold inflows when there is a balance of payments surplus. 
C)  to decrease gold outflows when there is a balance of payments surplus. 
D)  to cause the exchange rate to appreciate or depreciate.

Question 8

Even with persistent trade deficits,the value of the U.S.dollar continued to rise into the mid-2000s primarily due to

Accepted Answer

A)  strong dollar policies of the U.S. Treasury. 
B)  falling U.S. fiscal deficits. 
C)  economic growth in the U.S.. 
D)  expansionary U.S. monetary policy. 
A)  strong dollar policies of the U.S. Treasury. 
B)  falling U.S. fiscal deficits. 
C)  economic growth in the U.S.. 
D)  expansionary U.S. monetary policy.

The Bretton Woods System was a:

In the wake of the 2008-2009 global financial crisis the following is a potential economic problem facing the world today

What are the most serious economic problems facing the world today?

The Bretton Woods System:

The International Monetary Fund was initially established to manage

Explain why the establishment of a freely-flexible exchange rate system is unlikely today.

Sterilization refers to actions taken by central banks

Even with persistent trade deficits,the value of the U.S.dollar continued to rise into the mid-2000s primarily due to

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

Filters

Exam 21: The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

The Bretton Woods System was a:

In the wake of the 2008-2009 global financial crisis the following is a potential economic problem facing the world today

What are the most serious economic problems facing the world today?

The Bretton Woods System:

The International Monetary Fund was initially established to manage

Explain why the establishment of a freely-flexible exchange rate system is unlikely today.

Sterilization refers to actions taken by central banks

Even with persistent trade deficits,the value of the U.S.dollar continued to rise into the mid-2000s primarily due to

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

Filters