Question 1

The Jamaica Agreement demonetized _________.

Accepted Answer

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

Question 2

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 3

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 4

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 5

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 6

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 7

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.

Question 8

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 9

_______________ is a sustained increase in prices.

Accepted Answer

Inflation
Explanatio...

Question 10

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 11

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 12

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

Accepted Answer

internatio...

Question 13

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

Accepted Answer

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

Question 14

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 15

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 16

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 17

Inflated currencies tend to weaken.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

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...

Exam 8: The International Monetary System and Financial Forces

Hawala is a

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Currency exchange controls are found most frequently in

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_______________ is a sustained increase in prices.

Correct AnswerverifiedInflationExplanatio...View AnswerShow Answer

The Jamaica Agreement demonetized _________.

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One attribute of the U.S.tariff schedule is

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The three major taxes governments use to generate revenue are

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The Bank for International Settlements is

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A fixed peg currency arrangement means that

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

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Inflated currencies tend to weaken.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In an inflationary economy the following conditions may be present:

Correct AnswerverifiedShow Answer

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

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

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Inflation
Explanatio...
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internatio...
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