Question 1 (Weight 5.88%) Unit “Module 4: International Macroeconomic Policy” Under the Bretton Wood

FIRST GRADER essay writing company is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.


Order a Similar Paper Order a Different Paper

Question 1 (Weight 5.88%) Unit “Module 4: International
Macroeconomic Policy”

Under the Bretton Woods system,
the confidence problem described

( )a lack of confidence that the U.S.
dollar would be defined as the reserve currency.
( )a lack of confidence that the IMF
would help the countries with current account deficits.
( )a lack of confidence that
countries besides the U.S. would be able to maintain current account
surpluses.
( )a lack of confidence that the U.S.
would keep the price of gold in terms of the U.S. dollar fixed.
( )a lack of confidence that
competitive devaluations would occur.

.gif” alt=”The question is incorrect”> Question 2 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

The Economic and Monetary Union is
not an optimum currency area because

( )it does not include all of the EU.
( )the mobility of capital and assets
is too low.
( )it does not include enough
countries.
( )it includes too many countries.
( )the mobility of workers is too
low.

.gif” alt=”The question is incorrect”> Question 3 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is NOT a
valid argument for a flexible exchange rate regime?

( )A flexible exchange rate regime
increases the efficiency of international trade.
( )A flexible exchange rate regime is
symmetrical.
( )A flexible exchange rate regime
permits monetary policy autonomy.
( )A flexible exchange rate regime
automatically stabilizes aggregate demand and production.
(x)A flexible exchange rate regime
allows countries to avoid importing inflation from other countries.

.gif” alt=”The question is correct”> Question 4 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

The direct predecessor of the
Economic and Monetary Union was the

( )Bretton Woods System.
( )Stability and Growth Pact.
( )Monetary Efficiency Gain.
( )Optimum Currency Area.
( )European Monetary System.

.gif” alt=”The question is incorrect”> Question 5 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

During the 2000s, the U.S.
maintained a large current account deficit. One cause of this was

( )high interest rates.
( )a falling value of the U.S.
dollar.
( )high investment expenditure.
( )low saving in other countries.
()low consumption expenditure.

.gif” alt=”The question is incorrect”> Question 6 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is NOT a
lesson that economists have learned from the crises that have afflicted poor
and middle income countries in the past few decades?

( )When failures in multiple markets
exist, it is important to consider how liberalization or reform in one market
will affect other markets.
( )Maintaining a fixed exchange rate
avoids speculation and is the best way to prevent a financial crisis from
occurring in the first place.
( )Maintaining a fixed exchange rate
can hinder a central bank’s ability to act as a lender of last resort.
( )A crisis in the banking sector can
magnify economic problems for other sectors.
()Even healthy economies can be
adversely affected by contagion.

.gif” alt=”The question is incorrect”> Question 7 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following can be used
to test if participants in the foreign exchange market are able to process
available information?

( )Purchasing power parity.
( )The law of one price.
( )Risk aversion.
( )Nominal interest parity.
(x)None of the above.

.gif” alt=”The question is incorrect”> Question 8 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Under a floating exchange rate
regime, an increase in the demand for monetary assets is predicted to cause

( )an increase in production that is
the same as would be the case under a fixed exchange rate regime.
( )a decrease in production that is
smaller than would be the case under a fixed exchange rate regime.
()an increase in production that is
smaller than would be the case under a fixed exchange rate regime.
( )an increase in production that is
larger than would be the case under a fixed exchange rate regime.
( )a decrease in production that is
larger than would be the case under a fixed exchange rate regime.

.gif” alt=”The question is incorrect”> Question 9 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is NOT a
motive for trading assets in the international capital market?

( )Reduction of risk.
( )Intertemporal trade.
()Avoidance of taxes.
( )Diversification.
( )Capital controls.

.gif” alt=”The question is incorrect”> Question 10 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

A currency board

()can achieve exchange rate
stability, but not capital mobility and effective monetary policy.
( )can achieve exchange rate
stability and effective monetary policy, but not capital mobility.
( )can achieve effective monetary
policy and capital mobility, but not exchange rate stability.
( )can achieve exchange rate
stability and capital mobility, but not effective monetary policy.
( )can achieve exchange rate
stability, capital mobility and effective monetary policy.

.gif” alt=”The question is correct”> Question 11 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

An offshore currency deposit is

( )a deposit of euros and another
currency.
( )a deposit of euros and dollars.
()a deposit denominated in a
currency other than that of the country where the bank resides.
( )a deposit of currency that is used
to pay for goods before they are imported.
( )a deposit of currency that is used
to pay for goods after they are exported.

.gif” alt=”The question is incorrect”> Question 12 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is NOT a
typical feature of developing countries?

( )Few natural or agricultural
resources.
( )A history of high inflation.
()Poorly functioning capital
markets.
( )A history of government control of
the economy.
( )Rampant corruption.

.gif” alt=”The question is incorrect”> Question 13 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is a member
of the European Union but not a member of the Economic and Monetary Union
(the euro zone)?

( )Greece
( )United Kingdom
()Ukraine
( )Ireland
( )Greece

.gif” alt=”The question is incorrect”> Question 14 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Under the Bretton Woods system

( )speculative flows of financial
assets were terminated.
( )no country had independent
monetary policy.
()all countries held gold as
official international reserves.
( )the Federal Reserve System was
responsible for holding enough gold to exchange for U.S. dollars.
( )all countries held dollars as
official international reserves.

.gif” alt=”The question is correct”> Question 15 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is true?

( )High income countries have about
10 times the income of low income countries.
( )Despite the theory of convergence,
no poor countries have been able to catch up with rich countries.
( )Because of the theory of
convergence, poor countries have consistently caught up with rich countries.
()There is a big difference in
economic growth among different regions.
( )Evidence suggests that the richest
economies are the most corrupt.

Score: 100.00%Score in test: 100.00% × 5.88 = 5.88%

.gif” alt=”The question is incorrect”> Question 16 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following is NOT a
form of finance for poor and middle income countries that want to borrow in
international capital markets?

()Foreign direct investment.
( )Bonds issued by the government or
the private sector.
( )Loans from commercial banks.
( )Portfolio investment in the equity
of firms.
( )Money in circulation from the
central bank.

.gif” alt=”The question is incorrect”> Question 17 (Weight 5.88%) Unit
“Module 4: International Macroeconomic Policy”

Which of the following could
result from a current account deficit that is too large?

( )Growing foreign debt.
( )Excessive net outflows of
financial assets.
( )Investment expenditure that is too
low.
( )Government spending that is too
low.
()Difficulties for domestic
creditors in collecting their money.

Got stuck with another paper? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order


Order a Similar Paper Order a Different Paper
Writerbay.net