Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
3Activity
0 of .
Results for:
No results containing your search query
P. 1
International Business Quiz

International Business Quiz

Ratings: (0)|Views: 2,306|Likes:
Published by Nurul Iman

More info:

Published by: Nurul Iman on Feb 03, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

12/12/2013

pdf

text

original

 
Chapter 10 - The International Monetary System
Chapter 10The International Monetary System
 
True / False Questions
 1.
(p. 354)
The institutional arrangements that govern exchange rates are referred to as theinternational monetary system.
TRUE
 
 Difficulty: Easy 
2.
(p. 354)
When the foreign exchange market determines the relative value of a currency, thecountry is adhering to a pegged exchange rate.
FALSE
 
 Difficulty: Easy 
3.
(p. 354)
A pegged rate means that the value of a currency is fixed relative to a referencecurrency and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate.
TRUE
 
 Difficulty: Easy 
4.
(p. 354)
China adheres to a floating exchange rate regime.
FALSE
 
 Difficulty: Medium 
10-1
 
Chapter 10 - The International Monetary System
5.
(p. 354)
If a country tries to hold the value of its currency within some range against animportant reference currency the country has a dirty float system.
TRUE
 
 Difficulty: Easy 
6.
(p. 354)
The Gold Standard called for a fixed exchange rate system against the U.S. dollar.
FALSE
 
 Difficulty: Medium 
7.
(p. 354-355)
The World Bank is responsible for maintaining order in the international monetarysystem.
FALSE
 
 Difficulty: Medium 
8.
(p. 354)
The Bretton Woods system called for a system of floating exchange rates.
FALSE
 
 Difficulty: Hard  
9.
(p. 356)
Under the Gold Standard, each nation pegged its currency to gold making it easy todetermine exchange rates.
TRUE
 
 Difficulty: Medium 
10-2
 
Chapter 10 - The International Monetary System
10.
(p. 356)
The amount of currency needed to purchase one ounce of gold under the GoldStandard was referred to as the gold par value.
TRUE
 
 Difficulty: Medium 
11.
(p. 356)
It was claimed that the strength of the Gold standard was that it contained a powerfulmechanism for achieving balance of trade equilibrium.
TRUE
 
 Difficulty: Medium 
12.
(p. 357)
Under the Bretton Woods system, only the dollar, the pound and the yen wereconvertible to gold.
FALSE
 
 Difficulty: Medium 
13.
(p. 357)
Devaluations of up to 10% were permitted under the Bretton Woods system.
TRUE
 
 Difficulty: Medium 
14.
(p. 359)
The World bank's initial mission was to lend money to Third World nations.
FALSE
 
 Difficulty: Medium 
10-3

Activity (3)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->