IB 300 Test questions with answers
well defined
Representatives at the Bretton Woods meeting in 1944 agreed that floating exchange rates had
proven satisfactory and should be continued. - ANS✅✅False
When President Nixon announced that the United States would no longer exchange gold for paper
dollars held by foreign banks, currency markets were greatly affected and closed for several days. -
ANS✅✅True
If freely floating currencies are allowed to fluctuate against one another, at times the fluctuations
might be quite large. - ANS✅✅True
Historically, gold has been used as a way for people to store value because of its - ANS✅✅purity
and scarcity
What has been the most used central reserve asset in the world since World War II? - ANS✅✅US
dollar
Countries maintain reserve accounts in order to - ANS✅✅intervene in currency markets when
needed.
How did the Jamaica Agreement affect IMF members? - ANS✅✅It established the rules for the
floating rate currency exchange rate system.
In a managed float currency arrangement, the currency fluctuates while - ANS✅✅the country's
monetary authority intervenes on the currency market without making its goals and targets public.
A vehicle currency is a currency - ANS✅✅used for international trade or investment.
The present floating exchange rate system is not a totally free float because - ANS✅✅some central
banks from time to time intervene in the market to buy or sell large amounts of currency.
well defined
Representatives at the Bretton Woods meeting in 1944 agreed that floating exchange rates had
proven satisfactory and should be continued. - ANS✅✅False
When President Nixon announced that the United States would no longer exchange gold for paper
dollars held by foreign banks, currency markets were greatly affected and closed for several days. -
ANS✅✅True
If freely floating currencies are allowed to fluctuate against one another, at times the fluctuations
might be quite large. - ANS✅✅True
Historically, gold has been used as a way for people to store value because of its - ANS✅✅purity
and scarcity
What has been the most used central reserve asset in the world since World War II? - ANS✅✅US
dollar
Countries maintain reserve accounts in order to - ANS✅✅intervene in currency markets when
needed.
How did the Jamaica Agreement affect IMF members? - ANS✅✅It established the rules for the
floating rate currency exchange rate system.
In a managed float currency arrangement, the currency fluctuates while - ANS✅✅the country's
monetary authority intervenes on the currency market without making its goals and targets public.
A vehicle currency is a currency - ANS✅✅used for international trade or investment.
The present floating exchange rate system is not a totally free float because - ANS✅✅some central
banks from time to time intervene in the market to buy or sell large amounts of currency.
