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Home  arrow Student Resources  arrow Chapter 21: The International Financial System  arrow Multiple Choice Quiz

Multiple Choice Quiz



This activity contains 15 questions.

Question 1.
Under a managed float regime:

 
End of Question 1


Question 2.
A central bank purchase of domestic currency by the sale of foreign assets in the foreign exchange market will:

 
End of Question 2


Question 3.
An unsterilized exchange intervention is one in which:

 
End of Question 3


Question 4.
To offset the monetary base effects of a domestic currency purchase, the Fed could:

 
End of Question 4


Question 5.
Capitol controls are used

 
End of Question 5


Question 6.
Advantages of exchange rate targeting include:

 
End of Question 6


Question 7.
The trade balance shows:

 
End of Question 7


Question 8.
A speculative attack on a country's currency

 
End of Question 8


Question 9.
Under a gold standard:

 
End of Question 9


Question 10.
The Bretton Woods agreement:

 
End of Question 10


Question 11.
In balance of payments accounting, the change in official reserve assets equals:

 
End of Question 11


Question 12.
Under a fixed exchange rate regime, if the exchange rate is overvalued the central bank must ________ domestic currency to ________ the expected return on domestic deposits.

 
End of Question 12


Question 13.
Which of the following supports the argument that the world would be better off without an international lender of last resort?

 
End of Question 13


Question 14.
Managed float

 
End of Question 14


Question 15.
Special Drawing Rights

 
End of Question 15





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