The main features of the European Monetary system are ?

Related Mcqs:

1. The European Monetary Union is an example of a ?

   A. customs union
   B. free trade area
   C. reciprocal trade agreement
   D. monetary union

2. As of 2002, the ________ became the official currency union of the European Monetary System ?

   A. dollar
   B. mark
   C. franc
   D. euro

3. 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

4. The three main tools of monetary policy are ?

   A. fiat, commodity and deposit money
   B. Open-market operations reserve requirements and the refinancing rate
   C. The money supply, government purchases and taxation
   D. Government expenditures taxation and reserve requirements
   E. Coin, currency and demand deposits

5. 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

6. A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

   A. enhances
   B. undermines
   C. encourages
   D. facilitates

7. Which of the following is not an instrument of monetary policy ?

   A. Taxation
   B. Bank rate
   C. Open-market operations
   D. Credit rationing

8. Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?

   A. H
   B. F
   C. E
   D. c

9. The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?

   A. freely fluctuating exchange rates
   B. adjustable pegged exchange rates
   C. managed floating exchange rates
   D. pegged or fixed exchange rates

10. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?

    A. indicative plan
    B. central bank policies
    C. central planning
    D. instrument variables