Question 1

A managed float currency arrangement is when

Accepted Answer

A)  the government intervenes on the currency market without making its goals and targets public. 
B)  the currency uses the currencies of trading partners as ballast. 
C)  a group of nations decide to manage their currencies jointly and publicly. 
D)  gold is used to stabilize the currency values, hence, managed. 
A)  the government intervenes on the currency market without making its goals and targets public. 
B)  the currency uses the currencies of trading partners as ballast. 
C)  a group of nations decide to manage their currencies jointly and publicly. 
D)  gold is used to stabilize the currency values, hence, managed. A

Question 2

After Bretton Woods,the major currencies floated in the currency markets,with their value determined by ______________.

Accepted Answer

supply and demand

Question 3

The exchange rate for today for delivery within two days is known as the current rate.

Accepted Answer

A) True 
 B)False  False

Question 4

A _________________ is holdings a country can draw on when needed to finance trade or investments or to intervene in currency markets.

Accepted Answer

The answer of A _________________ is holdings a country can...

Question 5

The random walk hypothesis is an explanation of _____________ forecasting.

Accepted Answer

exchange rate
Explan

Question 6

The ___________ system set up fixed exchange rates among member nations' currencies.

Accepted Answer

The answer of The ___________ system set up fixed exchange...

Question 7

The record of a country's transactions with the rest of the world is the _____________.

Accepted Answer

balance of payments

Question 8

As global financial markets become more integrated,we can expect countries' inflation rates to vary over a small range.

Accepted Answer

A) True 
 B)False

Question 9

Charles De Gaulle pushed the Bank of ___________ to redeem its dollar holdings for gold,resulting in the end of the Bretton Woods system.

Accepted Answer

The answer of Charles De Gaulle pushed the Bank of...

Question 10

A value-added tax is actually a sales tax that is

Accepted Answer

A)  paid by the firm rather than the consumer. 
B)  paid in stages along the process from raw materials to consumer, and then credited after final sale. 
C)  called a value-added tax to create a positive spin on taxation. 
D)  voluntarily paid on exports. 
A)  paid by the firm rather than the consumer. 
B)  paid in stages along the process from raw materials to consumer, and then credited after final sale. 
C)  called a value-added tax to create a positive spin on taxation. 
D)  voluntarily paid on exports.

Question 11

Balance of payments data

Accepted Answer

A)  reveal a country's assets. 
B)  suggest areas of concern in monetary and fiscal policy. 
C)  reveal demand for a country's currency. 
D)  show how the country's currency arrangement (fixed, pegged, floating) is valued. 
A)  reveal a country's assets. 
B)  suggest areas of concern in monetary and fiscal policy. 
C)  reveal demand for a country's currency. 
D)  show how the country's currency arrangement (fixed, pegged, floating) is valued.

Question 12

The Triffin paradox suggests that

Accepted Answer

A)  reserve currencies can never run deficits. 
B)  eventually, reserve currencies will run deficits, which will lead to lack of confidence in the currency. 
C)  the more a currency is held in reserves, the stronger it is. 
D)  the U.S. dollar could never be a reserve currency. 
A)  reserve currencies can never run deficits. 
B)  eventually, reserve currencies will run deficits, which will lead to lack of confidence in the currency. 
C)  the more a currency is held in reserves, the stronger it is. 
D)  the U.S. dollar could never be a reserve currency.

Question 13

Market forces that set the relative prices of currencies are

Accepted Answer

A)  not influenced by government policies. 
B)  not influenced by world events. 
C)  influenced by many forces including forces external to business such as world events. 
D)  influenced by seller optimism only. 
A)  not influenced by government policies. 
B)  not influenced by world events. 
C)  influenced by many forces including forces external to business such as world events. 
D)  influenced by seller optimism only.

Question 14

The Bretton Woods meeting in 1944 established a floating rate exchange system among Allied governments that was imposed on the Axis governments.

Accepted Answer

A) True 
 B)False

Question 15

The trend toward reduced variation in interest rates across a wide group of economies can be explained by _________________.

Accepted Answer

globalization
Explan

Question 16

That the real interest rate will be the nominal interest rate minus the expected rate of inflation is known as the ______________.

Accepted Answer

The answer of That the real interest rate will be...

Question 17

Countries put limitations on the convertibility of their currency when they are concerned that

Accepted Answer

A)  there is too much domestic spending. 
B)  foreigners will hold control of their monetary policy. 
C)  their foreign reserves could be depleted. 
D)  there is not enough domestic spending. 
A)  there is too much domestic spending. 
B)  foreigners will hold control of their monetary policy. 
C)  their foreign reserves could be depleted. 
D)  there is not enough domestic spending.

Question 18

______________ currency is the name given to a currency used by central banks when they intervene in the currency markets.

Accepted Answer

The answer of ______________ currency is the name given to...

Question 19

If freely floating currencies are allowed to fluctuate against one another,at times the fluctuations might be quite large.

Accepted Answer

A) True 
 B)False

Question 20

The IMF created the __________ to replace the dollar as a reserve currency.

Accepted Answer

The answer of The IMF created the __________ to replace...

A managed float currency arrangement is when

After Bretton Woods,the major currencies floated in the currency markets,with their value determined by ______________.

The exchange rate for today for delivery within two days is known as the current rate.

A _________________ is holdings a country can draw on when needed to finance trade or investments or to intervene in currency markets.

The random walk hypothesis is an explanation of _____________ forecasting.

The ___________ system set up fixed exchange rates among member nations' currencies.

The record of a country's transactions with the rest of the world is the _____________.

As global financial markets become more integrated,we can expect countries' inflation rates to vary over a small range.

Charles De Gaulle pushed the Bank of ___________ to redeem its dollar holdings for gold,resulting in the end of the Bretton Woods system.

A value-added tax is actually a sales tax that is

Balance of payments data

The Triffin paradox suggests that

Market forces that set the relative prices of currencies are

The Bretton Woods meeting in 1944 established a floating rate exchange system among Allied governments that was imposed on the Axis governments.

The trend toward reduced variation in interest rates across a wide group of economies can be explained by _________________.

That the real interest rate will be the nominal interest rate minus the expected rate of inflation is known as the ______________.

Countries put limitations on the convertibility of their currency when they are concerned that

______________ currency is the name given to a currency used by central banks when they intervene in the currency markets.

If freely floating currencies are allowed to fluctuate against one another,at times the fluctuations might be quite large.

The IMF created the __________ to replace the dollar as a reserve currency.

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix B: Export and Import Practices

Appendix C: Global Operations and Supply Chain Management

Filters

Exam 8: The International Monetary System and Financial Forces

A managed float currency arrangement is when

After Bretton Woods,the major currencies floated in the currency markets,with their value determined by ______________.

The exchange rate for today for delivery within two days is known as the current rate.

A _________________ is holdings a country can draw on when needed to finance trade or investments or to intervene in currency markets.

The random walk hypothesis is an explanation of _____________ forecasting.

The ___________ system set up fixed exchange rates among member nations' currencies.

The record of a country's transactions with the rest of the world is the _____________.

As global financial markets become more integrated,we can expect countries' inflation rates to vary over a small range.

Charles De Gaulle pushed the Bank of ___________ to redeem its dollar holdings for gold,resulting in the end of the Bretton Woods system.

A value-added tax is actually a sales tax that is

Balance of payments data

The Triffin paradox suggests that

Market forces that set the relative prices of currencies are

The Bretton Woods meeting in 1944 established a floating rate exchange system among Allied governments that was imposed on the Axis governments.

The trend toward reduced variation in interest rates across a wide group of economies can be explained by _________________.

That the real interest rate will be the nominal interest rate minus the expected rate of inflation is known as the ______________.

Countries put limitations on the convertibility of their currency when they are concerned that

______________ currency is the name given to a currency used by central banks when they intervene in the currency markets.

If freely floating currencies are allowed to fluctuate against one another,at times the fluctuations might be quite large.

The IMF created the __________ to replace the dollar as a reserve currency.

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix B: Export and Import Practices

Appendix C: Global Operations and Supply Chain Management

Filters