POS 486 Quiz UPDATED ACTUAL Exam Questions and CORRECT Answers

POS 486 Quiz UPDATED ACTUAL Exam
Questions and CORRECT Answers
The current account includes
a) direct investment assets.
b) monetary reserves.
c) investment liabilities.

d) exports and imports. - CORRECT ANSWER - 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 - CORRECT ANSWER - a) a deficit


3) The financial account includes


a) the capital account.
b) secondary income.
c) portfolio investment.

d) services trade. - CORRECT ANSWER - c) portfolio investment.


4) Orthodox liberals advise governments to deal with balance of payments deficits with
a) tariffs.
b) monetary policy.
c) currency devaluation.

d) financing. - CORRECT ANSWER - b) monetary policy.

, 5) When a state lowers the official value of its currency, it is engaging in


a) depreciation.
b) appreciation.
c) revaluation.

d) devaluation. - CORRECT ANSWER - d) devaluation.


6) In the interwar period (between World Wars I and II), the world had (Possibly)


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. - CORRECT ANSWER - b) a gold exchange standard and fixed
exchange rates.


7) 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. - CORRECT ANSWER - b) a gold exchange standard.


8) Which country has the second most votes in the IMF?
a) Japan
b) U.S.
c) U.K.

d) China - CORRECT ANSWER - a) Japan