A. dollar
B. mark
C. franc
D. euro
Related Mcqs:
- A monetary union means ________, ________ and ________?
A. permanently fixed capital movements floating exchange rates a fixed structure of interest rates
B. permanently fixed exchange rates, free capital movements, a single interest rates
C. a common currency a single central bank, common monetary policy
D. a common currency floating exchange rates common monetary policy - The European Monetary Union is an example of a ?
A. customs union
B. free trade area
C. reciprocal trade agreement
D. monetary union - A central bank or monetary authority hold foreign currency for the purpose of exchange intervention and the settlement of intergovernmental claims. Term the currency ?
A. Reserve currency
B. Hot currency
C. Pegged currency
D. Hard currency - Which of the following is a problem for monetary policy in a currency union ?
A. Money supply is more difficult to control in a currency union.
B. The inflation-unemployment trade-off is more unstable in a currency union
C. All of these answers describe problems for monetary policy in a currency union
D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others monetary policy must be one size fits all - Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
A. relatively high; relatively large
B. relatively high; relatively small
C. relatively low ; relatively large
D. relatively low ; relatively small - Mention the term for an official act of reducing the rate in which one currency is exchanged for another in international currency markets ?
A. Devolution
B. Devaluation
C. Price cap
D. Cut-rate - 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 - If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?
A. should increase the dollar value of exports
B. should not have any effect on the dollar value of U.S imports
C. must increase the balance of trade
D. All of the above - Which exchange rate system does not require monetary reserves for official exchange rate intervention ?
A. floating exchange rates
B. pegged exchanged rates
C. managed floating exchange rates
D. dual exchange rates - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate
