1
POS 486 Final Exam Questions with Answers (100%
Correct Answers)
The Current Account Includes Answer: Imports and Exports
Since the 1970s, in regard to the current account, the United States has
generally had Answer: A deficit
The Financial Account includes Answer: portfolio investment
Orthodox liberals advise governments to deal with balance of
payments deficits with Answer: Currency Devaluation
When a state lowers the official value of its currency, it is engaging in
Answer: Devaluation
In the interwar period (between World Wars I and II), the world had
Answer: A gold standard and floating exchange rates
The type of monetary regime arranged at the Bretton Woods
conference is best described as: Answer: A gold exchange standard
Which country has the most votes in the IMF? Answer: Japan
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, 2
The Triffin Dilemma in regard to reserve assets refers to conflict
between Answer: The liquidity and confidence functions.
The emergence of the Eurocurrency market is linked to what event:
Answer: the détente period of the Cold War.
SDRs (Special Drawing Rights): Answer: are allocated in proportion to a
country's IMF quota.
The "Unholy Trinity" today involves a trade-off between: Answer: fixed
exchange rates and policy autonomy.
Misalignment refers to exchange rates that have: Answer: moved from
their market value.
Eurocurrencies are: Answer: national currencies located in banks
outside the home country.
The origins of the European Union date from what decade: Answer:
1950s.
True or False: The financial account of the balance of payments
includes income from all exports and imports. Answer: False
© 2025 All rights reserved
POS 486 Final Exam Questions with Answers (100%
Correct Answers)
The Current Account Includes Answer: Imports and Exports
Since the 1970s, in regard to the current account, the United States has
generally had Answer: A deficit
The Financial Account includes Answer: portfolio investment
Orthodox liberals advise governments to deal with balance of
payments deficits with Answer: Currency Devaluation
When a state lowers the official value of its currency, it is engaging in
Answer: Devaluation
In the interwar period (between World Wars I and II), the world had
Answer: A gold standard and floating exchange rates
The type of monetary regime arranged at the Bretton Woods
conference is best described as: Answer: A gold exchange standard
Which country has the most votes in the IMF? Answer: Japan
© 2025 All rights reserved
, 2
The Triffin Dilemma in regard to reserve assets refers to conflict
between Answer: The liquidity and confidence functions.
The emergence of the Eurocurrency market is linked to what event:
Answer: the détente period of the Cold War.
SDRs (Special Drawing Rights): Answer: are allocated in proportion to a
country's IMF quota.
The "Unholy Trinity" today involves a trade-off between: Answer: fixed
exchange rates and policy autonomy.
Misalignment refers to exchange rates that have: Answer: moved from
their market value.
Eurocurrencies are: Answer: national currencies located in banks
outside the home country.
The origins of the European Union date from what decade: Answer:
1950s.
True or False: The financial account of the balance of payments
includes income from all exports and imports. Answer: False
© 2025 All rights reserved
