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.

Related Mcqs:

1. International Security Assistance Force (ISAF) to take all measures necessary to fulfill its mandate of assisting the Afghan Interim Authority in maintaining security was established on:

   A. December 20, 2011
   B. December 20, 2010
   C. December 20, 2004
   D. December 20, 2001

2. What was the main strategy of the Maastricht Treaty for stabilizing and maintaining economic health in the European Union?

   A. reducing the annual EU budget in order to lower the tax burden on EU members
   B. controlling national budgets by preventing high expenditures
   C. restricting membership in the monetary union
   D. taxing the richer countries of the EU and distributing some of that money to poor countries

3. 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

4. This “butcher of the Balkans” murdered over 200,000 people and forced millions out of his country. Bill Clinton authorized the CIA to commence the toppling of his regime, which succeeded to an extent. Who is this Serbian criminal whose policy of ethnic cleansing resulted in mass murder?

   A. Alija lzetbegovic
   B. Zoran Lilic
   C. Vojislav Kostunica
   D. Slobodan Milosevic

5. The U.S. government agency responsible for determining whether low-priced imports are unfair or have hurt U.S. industry is the:

   A. International Trade Commission
   B. Commerce Department
   C. Fair Trade Council
   D. House Commerce Committee

6. 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

7. Devaluation of a stat’s currency:

   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

8. 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

9. 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

10. “Montreal Protocol” attempts to protect the ozone layer by phasing out the production of a number of substances believed to be responsible for ozone depletion was signed in:

    A. 1990
    B. 1989
    C. 1988
    D. 1980