POS 486 Exam Questions And Answers (Verified And Updated)

POS 486 Exam Questions And Answers (Verified And Updated) The current account includes a) direct investment assets. b) monetary reserves. c) investment liabilities. d) exports and imports. - answerd) 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 - answera) a deficit 3) The financial account includes a) the capital account. b) secondary income. c) portfolio investment. d) services trade. - answerc) 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. - answerb) 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. - answerd) 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. - answerb) 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. - answerb) 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 - answera) Japan 9) 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. - answerd) the liquidity and confidence functions. 10) The emergence of the Eurocurrency market is linked to what event: