Question 1

Problems of the gold standard include

Accepted Answer

A)  holding cost, weight, no interest, and attractiveness to thieves. 
B)  nations' willingness to agree to it. 
C)  its interference in the jewelry market. 
D)  its purity levels. 
A)  holding cost, weight, no interest, and attractiveness to thieves. 
B)  nations' willingness to agree to it. 
C)  its interference in the jewelry market. 
D)  its purity levels.

Question 2

BOP accounts are recorded in a double-entry bookkeeping method,with each transaction having a debit and credit side.

Accepted Answer

A) True 
 B)False

Question 3

A central reserve asset is any holding that has value that is held by private banks in case of a liquidity crisis.

Accepted Answer

A) True 
 B)False

Question 4

The international Fisher effect says that the interest rate differentials in any two currencies reflect

Accepted Answer

A)  the ratio of their inflation rates minus COL. 
B)  arbitrary differences in the two economies. 
C)  PPP differences in the two economies. 
D)  the expected change in their exchange rates. 
A)  the ratio of their inflation rates minus COL. 
B)  arbitrary differences in the two economies. 
C)  PPP differences in the two economies. 
D)  the expected change in their exchange rates.

Question 5

The Fisher effect states that the real interest rate

Accepted Answer

A)  is the nominal rate plus the recorded inflation rate. 
B)  is the only measure to use in calculating PPP. 
C)  is the nominal rate minus the expected inflation rate. 
D)  is the difference between the nominal rate and the inflation rate. 
A)  is the nominal rate plus the recorded inflation rate. 
B)  is the only measure to use in calculating PPP. 
C)  is the nominal rate minus the expected inflation rate. 
D)  is the difference between the nominal rate and the inflation rate.

Question 6

In the Bretton Woods system,the only currency redeemable for gold was _____.

Accepted Answer

The answer of In the Bretton Woods system,the only currency...

Question 7

The controlling mechanism for a gold-based exchange system and a floating rate system are the same.

Accepted Answer

A) True 
 B)False

Question 8

The international Fisher effect states that the interest rate differentials for any two currencies reflect the expected change in their exchange rates.

Accepted Answer

A) True 
 B)False

Question 9

The U.S.in recent years has had a significant deficit in its current account.This means that the U.S.citizens are exporting more than they are importing.

Accepted Answer

A) True 
 B)False

Question 10

_____________ is the simultaneous buying and selling to make a profit with no risk.

Accepted Answer

The answer of _____________ is the simultaneous buying and selling...

Question 11

Lower corporate tax rates are found in

Accepted Answer

A)  the U.S. 
B)  Japan. 
C)  Brazil. 
D)  Saudi Arabia. 
A)  the U.S. 
B)  Japan. 
C)  Brazil. 
D)  Saudi Arabia.

Question 12

The two main reserve currencies are the dollar and the ________.

Accepted Answer

The answer of The two main reserve currencies are the...

Question 13

The bid price is the

Accepted Answer

A)  highest priced buy order currently in the market. 
B)  lowest priced buy order currently in the market. 
C)  highest priced sell order currently in the market. 
D)  lowest priced sell order currently in the market. 
A)  highest priced buy order currently in the market. 
B)  lowest priced buy order currently in the market. 
C)  highest priced sell order currently in the market. 
D)  lowest priced sell order currently in the market.

Question 14

The evolution of the currency exchange rate system has moved from gold,through fixed to ________.

Accepted Answer

The answer of The evolution of the currency exchange rate...

Question 15

The law of one price states that in an efficient market,like products will never have like prices.

Accepted Answer

A) True 
 B)False

Question 16

Founded in 1930,the _______________ is the oldest international financial institution in the world.

Accepted Answer

Bank for I

Question 17

A _________________ arrangement commits the country's government to holding foreign reserves of a specific currency in an amount equal to its domestic currency supply and exchange the two at a fixed rate.

Accepted Answer

The answer of A _________________ arrangement commits the country's government...

Question 18

Currency exchange rate movements are well understood by economists and can be accurately forecast,which eliminates risk for the international seller operating with exposure outside the home currency.

Accepted Answer

A) True 
 B)False

Question 19

Most significantly for the international manager,the balance of payments reveals

Accepted Answer

A)  demand for a firm's products. 
B)  a firm's financial position. 
C)  a country's export patterns. 
D)  demand for a country's currency and the potential for changes in its economic environment. 
A)  demand for a firm's products. 
B)  a firm's financial position. 
C)  a country's export patterns. 
D)  demand for a country's currency and the potential for changes in its economic environment.

Question 20

Purchasing power parity is a way to compare

Accepted Answer

A)  the purchasing power of several currencies. 
B)  tastes in several different cultures. 
C)  the impact of financial aid in several economies. 
D)  meals in different economic systems, via the Big Mac Index. 
A)  the purchasing power of several currencies. 
B)  tastes in several different cultures. 
C)  the impact of financial aid in several economies. 
D)  meals in different economic systems, via the Big Mac Index.

Problems of the gold standard include

BOP accounts are recorded in a double-entry bookkeeping method,with each transaction having a debit and credit side.

A central reserve asset is any holding that has value that is held by private banks in case of a liquidity crisis.

The international Fisher effect says that the interest rate differentials in any two currencies reflect

The Fisher effect states that the real interest rate

In the Bretton Woods system,the only currency redeemable for gold was _____.

The controlling mechanism for a gold-based exchange system and a floating rate system are the same.

The international Fisher effect states that the interest rate differentials for any two currencies reflect the expected change in their exchange rates.

The U.S.in recent years has had a significant deficit in its current account.This means that the U.S.citizens are exporting more than they are importing.

_____________ is the simultaneous buying and selling to make a profit with no risk.

Lower corporate tax rates are found in

The two main reserve currencies are the dollar and the ________.

The bid price is the

The evolution of the currency exchange rate system has moved from gold,through fixed to ________.

The law of one price states that in an efficient market,like products will never have like prices.

Founded in 1930,the _______________ is the oldest international financial institution in the world.

A _________________ arrangement commits the country's government to holding foreign reserves of a specific currency in an amount equal to its domestic currency supply and exchange the two at a fixed rate.

Currency exchange rate movements are well understood by economists and can be accurately forecast,which eliminates risk for the international seller operating with exposure outside the home currency.

Most significantly for the international manager,the balance of payments reveals

Purchasing power parity is a way to compare

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

Problems of the gold standard include

BOP accounts are recorded in a double-entry bookkeeping method,with each transaction having a debit and credit side.

A central reserve asset is any holding that has value that is held by private banks in case of a liquidity crisis.

The international Fisher effect says that the interest rate differentials in any two currencies reflect

The Fisher effect states that the real interest rate

In the Bretton Woods system,the only currency redeemable for gold was _____.

The controlling mechanism for a gold-based exchange system and a floating rate system are the same.

The international Fisher effect states that the interest rate differentials for any two currencies reflect the expected change in their exchange rates.

The U.S.in recent years has had a significant deficit in its current account.This means that the U.S.citizens are exporting more than they are importing.

_____________ is the simultaneous buying and selling to make a profit with no risk.

Lower corporate tax rates are found in

The two main reserve currencies are the dollar and the ________.

The bid price is the

The evolution of the currency exchange rate system has moved from gold,through fixed to ________.

The law of one price states that in an efficient market,like products will never have like prices.

Founded in 1930,the _______________ is the oldest international financial institution in the world.

A _________________ arrangement commits the country's government to holding foreign reserves of a specific currency in an amount equal to its domestic currency supply and exchange the two at a fixed rate.

Currency exchange rate movements are well understood by economists and can be accurately forecast,which eliminates risk for the international seller operating with exposure outside the home currency.

Most significantly for the international manager,the balance of payments reveals

Purchasing power parity is a way to compare

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