A. increases the total portfolio value of foreigners who hold that currency
B. causes a drop in demand for that currency
C. increases confidence in a state’s ability to meet its debts
D. is rarely a quick fix for financial problems in the short term
Related Mcqs:
- Why are governments, even when acting together, at a disadvantage when intervening in international currency markets?
A. They can’t use state funds to buy or sell currencies
B. All of their movements are tightly regulated by the IMF
C. Developing countries oppose the manipulation of markets by developed countries
D. The control only a small fraction of the money moving on such markets - A unilateral move to reduce the value of one’s own currency by changing a fixed or official exchange rate is known as:
A. revaluation
B. reduction
C. restructuring
D. devaluation - What institution coordinates international currency exchange, the balance of international payments, and national accounts?
A. International Monetary Fund
B. All these answers are correct
C. World Bank
D. World Exchange Organization - A _________ is responsible for maintaining the value of a state’s currency to the extent that it can by limiting the amount of money printed and avoiding inflation.
A. regulatory commission
B. central bank
C. fiscal policy
D. currency policy - Hard currency is:
A. gold or silver bullion
B. petrodollars
C. money with a fixed exchange rate
D. money that can be readily converted to leading world currencies - What are open-border transaction?
A. Transactions where anything goes
B. Transactions where global trade and finance replace global trade and finance
C. Transactions where international trade and finance replace global trade and finance
D. Protectionist transactions - What are transborder transactions?
A. Transactions that occur through the web
B. Transactions that occur across open borders
C. Transaction that occur globally across widely dispersed locations
D. All of the above - __________ involves tangible goods such cannot be traded and moved freely like paper investments.
A. Portfolio investment
B. Fiduciary investment
C. Foreign direct investment
D. Currency investment - Currently, national currencies are valued against:
A. gold prices
B. the euro
C. silver prices
D. each other - In a centrally planned economy,
A. business leaders set production quotas and report them to government, which holds them accountable
B. government officials set prices
C. supply and demand are key indicators of prices and production levels
D. all of these are the case: government officials set prices; business leaders set production quotes and report them to government; and supply and demand are key indicators of prices and production levels
