Question 1

Historically,gold has been used as a way for people to store value because of its

Accepted Answer

A)   purity and scarcity.
B)   high transportation and security costs.
C)   lack of interest-earning ability.
D)   All of these choices are correct.

Question 2

Currency exchange controls are found most frequently in

Accepted Answer

A)   developing countries.
B)   developed countries.
C)   countries with pegged exchange rates.
D)   nondemocratic countries.

Question 3

After the crises in Japan in the spring of 2011,the

Accepted Answer

A)   yen strengthened.
B)   yen reached all-time lows against the dollar and the euro.
C)   Japanese monetary authorities allowed the yen to trade against the renminbi.
D)   yen stabilized at a 10-year low.

Question 4

Hawala is a

Accepted Answer

A)   money transfer method that is done with few traces.
B)   way to earn for the use of money that does not involve interest.
C)   banking system in Islamic banking.
D)   category of loan at the bank for International Settlements.

Question 5

_______________ assumes that past exchange rate patterns (trends,waves)can predict future ones.

Accepted Answer

The answer of _______________ assumes that past exchange rate patterns...

Question 6

In an inflationary economy the following conditions may be present:

Accepted Answer

A)   demand exceeds supply.
B)   money supply is increasing.
C)   prices are rising.
D)   All of these options are correct.

Question 7

One attribute of the U.S.tariff schedule is

Accepted Answer

A)   that it is printed in both Arabic and Hebrew.
B)   how specific it is.
C)   that its categories are quite general and easy to apply.
D)   that its harmonized version can be accessed via cell phone and iPad.

Question 8

_______________ is a sustained increase in prices.

Accepted Answer

Inflation
Explanatio...

Question 9

The _______________ says that the interest rate differentials for any two currencies will reflect the expected change in their exchange rates.

Accepted Answer

internatio...

Question 10

Inflated currencies tend to weaken.

Accepted Answer

A) True 
 B)False

Question 11

The _____________ states that in an efficient market,like items will have like prices.

Accepted Answer

The answer of The _____________ states that in an efficient...

Question 12

The price of one currency expressed in terms of the other currency is known as the _____________ quotation.

Accepted Answer

The answer of The price of one currency expressed in...

Question 13

The Big Mac Index is an example of purchasing power parity (PPP),an international measure of junk food consumption.

Accepted Answer

A) True 
 B)False

Question 14

Bitcoin and the ___________ are similar in that they are both currencies and both virtual.

Accepted Answer

The answer of Bitcoin and the ___________ are similar in...

Question 15

In 1717,Sir Isaac Newton took Britain from the silver standard (pounds sterling) to

Accepted Answer

A)   floating exchange rates.
B)   fixed exchange rates, using silver.
C)   the gold standard, with fixed rates.
D)   pegged rates.

Question 16

The three major taxes governments use to generate revenue are

Accepted Answer

A)   VAT, income tax, and withholding tax.
B)   sales tax, VAT, and income tax.
C)   property tax, VAT, and sales tax.
D)   income tax, property tax, and sales tax.

Question 17

The Jamaica Agreement demonetized _________.

Accepted Answer

The answer of The Jamaica Agreement demonetized _________....

Question 18

The Bank for International Settlements is

Accepted Answer

A)   a bank for central bankers.
B)   a last resort for overdue national debt.
C)   an organized arbitration panel sponsored by the UN.
D)   an arbitrage clearinghouse for Organisation for Economic Co-operation and Development (OEC
D)   economies.

Question 19

The Fisher effect describes interest rate parity; it's the law of one price applied to interest rates.Interest rates vary to take anticipated differences in inflation levels into account.

Accepted Answer

A) True 
 B)False

Question 20

A fixed peg currency arrangement means that

Accepted Answer

A)   the currency will move with its peg.
B)   monetary authorities will approve any movement, the peg is national.
C)   currency relationships are under the control of the central bank.
D)   allied nations' currencies will move in opposition, creating a balance.

Exam 8: The International Monetary System and Financial Forces

Historically,gold has been used as a way for people to store value because of its

Correct AnswerverifiedShow Answer

The three major taxes governments use to generate revenue are

Correct AnswerverifiedShow Answer

The price of one currency expressed in terms of the other currency is known as the _____________ quotation.

Correct AnswerverifiedShow Answer

One attribute of the U.S.tariff schedule is

Correct AnswerverifiedShow Answer

The _______________ says that the interest rate differentials for any two currencies will reflect the expected change in their exchange rates.

Correct Answerverifiedinternatio...View AnswerShow Answer

The Big Mac Index is an example of purchasing power parity (PPP),an international measure of junk food consumption.

Correct AnswerverifiedShow Answer

The Bank for International Settlements is

Correct AnswerverifiedShow Answer

Inflated currencies tend to weaken.

Correct AnswerverifiedShow Answer

In an inflationary economy the following conditions may be present:

Correct AnswerverifiedShow Answer

_______________ is a sustained increase in prices.

Correct AnswerverifiedInflationExplanatio...View AnswerShow Answer

A fixed peg currency arrangement means that

Correct AnswerverifiedShow Answer

The Fisher effect describes interest rate parity; it's the law of one price applied to interest rates.Interest rates vary to take anticipated differences in inflation levels into account.

Correct AnswerverifiedShow Answer

Bitcoin and the ___________ are similar in that they are both currencies and both virtual.

Correct AnswerverifiedShow Answer

The Jamaica Agreement demonetized _________.

Correct AnswerverifiedShow Answer

In 1717,Sir Isaac Newton took Britain from the silver standard (pounds sterling) to

Correct AnswerverifiedShow Answer

_______________ assumes that past exchange rate patterns (trends,waves)can predict future ones.

Correct AnswerverifiedShow Answer

The _____________ states that in an efficient market,like items will have like prices.

Correct AnswerverifiedShow Answer

Currency exchange controls are found most frequently in

Correct AnswerverifiedShow Answer

After the crises in Japan in the spring of 2011,the

Correct AnswerverifiedShow Answer

Hawala is a

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Inflation
Explanatio...
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