POS 486 FINAL UPDATED ACTUAL Exam
Questions and CORRECT Answers
1) 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
The financial account includes
a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade - CORRECT ANSWER - 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. - CORRECT ANSWER - 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. - CORRECT ANSWER - 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. - CORRECT ANSWER - 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. - CORRECT ANSWER - 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 - CORRECT ANSWER - 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.
Questions and CORRECT Answers
1) 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
The financial account includes
a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade - CORRECT ANSWER - 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. - CORRECT ANSWER - 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. - CORRECT ANSWER - 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. - CORRECT ANSWER - 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. - CORRECT ANSWER - 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 - CORRECT ANSWER - 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.
