POS 486 FINAL Questions And Answers With Latest
Updates
1) The current account includes
a) direct investment assets.
b) monetary reserves.
c) investment liabilities.
d) exports and imports. ANS d) exports and imports
Since the 1970s, in regard to the current account, the United States has generally had
a) a deficit
b) a surplus
c) a balance
d) volatility ANS a) a deficit
The financial account includes
a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade ANS c) portfolio investment
Orthodox liberals advise governments to deal with balance of payments deficits with
a) tariffs.
b) monetary policy.
c) currency devaluation.
d) financing. ANS b) monetary policy
When a state lowers the official value of its currency, it is engaging in
a) depreciation.
b) appreciation.
c) revaluation.
, d) devaluation. ANS d) devaluation
In the interwar period (between World Wars I and II), the world had
a) a gold standard and floating exchange rates.
b) a gold exchange standard and fixed exchange rates.
c) only floating exchange rates.
d) only a gold standard. ANS a) a gold standard and floating exchange rates
The type of monetary regime arranged at the Bretton Woods conference is best described as:
a) a managed floating regime.
b) a gold exchange standard.
c) a gold standard.
d) a free-floating regime. ANS a) a managed floating regime
Which country has the second most votes in the IMF?
a) Japan
b) U.S.
c) U.K.
d) China ANS a) Japan
The Triffin Dilemma in regard to reserve assets refers to conflict between
a) the need to devalue the U.S. dollar, and the inability to do so.
b) the liquidity and adjustment functions.
c) the confidence and adjustment functions.
d) the liquidity and confidence functions ANS d) the liquidity and confidence functions
The emergence of the Eurocurrency market is linked to what event:
a) the election of Pres. Jimmy Carter in the U.S.
b) the détente period of the Cold War
c) the entry of the UK into the EU
Updates
1) The current account includes
a) direct investment assets.
b) monetary reserves.
c) investment liabilities.
d) exports and imports. ANS d) exports and imports
Since the 1970s, in regard to the current account, the United States has generally had
a) a deficit
b) a surplus
c) a balance
d) volatility ANS a) a deficit
The financial account includes
a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade ANS c) portfolio investment
Orthodox liberals advise governments to deal with balance of payments deficits with
a) tariffs.
b) monetary policy.
c) currency devaluation.
d) financing. ANS b) monetary policy
When a state lowers the official value of its currency, it is engaging in
a) depreciation.
b) appreciation.
c) revaluation.
, d) devaluation. ANS d) devaluation
In the interwar period (between World Wars I and II), the world had
a) a gold standard and floating exchange rates.
b) a gold exchange standard and fixed exchange rates.
c) only floating exchange rates.
d) only a gold standard. ANS a) a gold standard and floating exchange rates
The type of monetary regime arranged at the Bretton Woods conference is best described as:
a) a managed floating regime.
b) a gold exchange standard.
c) a gold standard.
d) a free-floating regime. ANS a) a managed floating regime
Which country has the second most votes in the IMF?
a) Japan
b) U.S.
c) U.K.
d) China ANS a) Japan
The Triffin Dilemma in regard to reserve assets refers to conflict between
a) the need to devalue the U.S. dollar, and the inability to do so.
b) the liquidity and adjustment functions.
c) the confidence and adjustment functions.
d) the liquidity and confidence functions ANS d) the liquidity and confidence functions
The emergence of the Eurocurrency market is linked to what event:
a) the election of Pres. Jimmy Carter in the U.S.
b) the détente period of the Cold War
c) the entry of the UK into the EU
