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POS 486 FINAL Questions with Answers (100% Correct
Answers)
1) The current account includes
a) direct investment assets.
b) monetary reserves.
c) investment liabilities.
d) exports and imports. 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 Answer: a) a deficit
The financial account includes
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a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade 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. Answer: b) monetary policy
When a state lowers the official value of its currency, it is engaging in
a) depreciation.
b) appreciation.
c) revaluation.
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d) devaluation. 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. 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. Answer: a) a managed floating regime
Which country has the second most votes in the IMF?
a) Japan
© 2025 All rights reserved
POS 486 FINAL Questions with Answers (100% Correct
Answers)
1) The current account includes
a) direct investment assets.
b) monetary reserves.
c) investment liabilities.
d) exports and imports. 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 Answer: a) a deficit
The financial account includes
© 2025 All rights reserved
,2
a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade 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. Answer: b) monetary policy
When a state lowers the official value of its currency, it is engaging in
a) depreciation.
b) appreciation.
c) revaluation.
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, 3
d) devaluation. 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. 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. Answer: a) a managed floating regime
Which country has the second most votes in the IMF?
a) Japan
© 2025 All rights reserved
