Name the methodology by which members of the EMS maintain their currency exchange rates within an agreed upon range with respect to other member countries ?

Related Mcqs:

1. The exchange rate is the ratio at which the currency of one country is exchanged for the currency of another. Which method was developed by the World bank to exchange rates ?

   A. Breton Wood method
   B. Free market exchange rate
   C. Atlas method of exchange rate
   D. Open market exchange rate

2. The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?

   A. price feedback theory
   B. trade feedback theory
   C. J-curve theory
   D. purchasing power parity theory

3. A ____ is a regional trading bloc in Which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not member ?

   A. free trade area
   B. customs union
   C. common market
   D. monetary union

4. With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

   A. increased
   B. unaffected
   C. reduced
   D. None of these

5. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

   A. depreciation
   B. appreciation
   C. fall
   D. devaluation

6. Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

   A. pegged of fixed exchange rates
   B. adjustable pegged exchange rates
   C. managed floating exchange rates
   D. free floating exchange rates

7. If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

   A. not be affected
   B. appreciate
   C. depreciate
   D. fluctuate more than if interest rates were high

8. If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

   A. depreciate under a system of fixed exchange rates
   B. depreciate under a system of floating exchange rates
   C. appreciate under a system of floating exchange rates
   D. appreciate under a system of floating fixed rates

9. An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?

   A. relatively small; more difficult
   B. relatively small; easier
   C. relatively large; more difficult
   D. relatively large; easier

10. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

    A. Eurobank
    B. Foreign bank
    C. International Bank
    D. Multinational Bank