Question 1

Explain the concept of managed float.

Accepted Answer

A managed float allows for a limited amo...

Question 2

All of the following are purposes of the International Monetary Fund (IMF)  EXCEPT:

Accepted Answer

A)  To promote international monetary cooperation through a permanent institution.
B)  To facilitate the expansion and balanced growth of international trade.
C)  To develop a world currency by 2010.
D)  To promote exchange stability.
E)  To give confidence to members by making the general resources of the fund temporarily available to them under adequate safeguards.F) A) and E)
G) A) and D)

Question 3

The problem with tight exchange controls is that often they promote a _________________________.

Accepted Answer

A)  black market
B)  white market
C)  flat market
D)  slim market
E)  regular marketF) A) and B)
G) C) and D)

Question 4

In 1994,_______________ devaluation of its currency triggered the Asian financial crisis.

Accepted Answer

A)  China's
B)  Japan's
C)  Indonesia's
D)  India's
E)  Hong Kong'sF) B) and C)
G) A) and B)

Question 5

The Economist publishes a PPP study every year based on McDonald's Big Mac
hamburger.This index is called the Big Mac Induction.

Accepted Answer

A) True 
 B)False

Question 6

Today,the global economy is increasingly dominated by three major currency
blocs which include the U.S.dollar,the Japanese yen,and the euro.

Accepted Answer

A) True 
 B)False

Question 7

To expand services for countries in monetary difficulties,the IMF created Special
Drawing Rights (SDRs).

Accepted Answer

A) True 
 B)False

Question 8

In Europe,EU regulations do not cross national boundaries.

Accepted Answer

A) True 
 B)False

Question 9

The U.S.Department of Commerce prepares the balance of payments statement in the
United States.

Accepted Answer

A) True 
 B)False

Question 10

If payment for goods is to be made at some future date,the purchaser has the option of buying foreign exchange on the ________________ for delivery at some future
Date.

Accepted Answer

A)  black market
B)  gray market
C)  forward market
D)  exchange rate pass-through market
E)  commodities marketF) A) and E)
G) D) and E)

Question 11

According to the text,the euro will also help companies to streamline their ____________________.

Accepted Answer

A)  small business chains.
B)  North American chains.
C)  quality chains.
D)  HR chains.
E)  supply chains.F) A) and B)
G) D) and E)

Question 12

In 1944,the Bretton Woods (New Hampshire) Conference took place to establish the:

Accepted Answer

A)  international marketing system.
B)  international logistics system
C)  international monetary system
D)  international banking system
E)  international monetary system.F) B) and C)
G) C) and D)

Question 13

___________________ are those investments in enterprises or properties that are effectively controlled by residents of another country.

Accepted Answer

A)  Current account balance
B)  Capital account
C)  Trade balance
D)  Direct investments
E)  Portfolio investmentF) C) and E)
G) B) and D)

Question 14

Two economies which were severely affected by the South American financial
crisis are Argentina and Chile.

Accepted Answer

A) True 
 B)False

Question 15

According to the text,EMU will have a strategic impact on companies' following operations EXCEPT:

Accepted Answer

A)  price transparency.
B)  supply chains.
C)  hiring practices.
D)  new opportunities for small and medium-sized companies.
E)  intensified competitive pressures.F) C) and D)
G) A) and D)

Question 16

Another creation of the Bretton Woods Agreement was the International Bank for
Reconstruction and Development,known as:

Accepted Answer

The answer of Another creation of the Bretton Woods Agreement...

Question 17

The __________________________________ was established at Bretton Woods.

Accepted Answer

A)  Global Monetary Fund
B)  European Monetary Fund
C)  International Monetary Fund (IMF) 
D)  Asian Monetary Fund
E)  None of the aboveF) All of the above
G) C) and E)

Question 18

______________ float allows for a limited amount of government intervention to soften sudden swings in the value of a currency.

Accepted Answer

A)  Free (dirty) 
B)  Free (clean) 
C)  Restricted
D)  Profit
E)  ManagedF) C) and E)
G) C) and D)

Question 19

The adoption of the euro in the European Union took place in 1990.

Accepted Answer

A) True 
 B)False

Question 20

According to the text,the euro will have a major boon for __________________.

Accepted Answer

A)  small and medium-sized companies.
B)  large companies.
C)  German companies.
D)  Italian companies.
E)  French companies.F) C) and E)
G) All of the above

Exam 3: Financial Environment

In 1994,_______________ devaluation of its currency triggered the Asian financial crisis.

Correct AnswerverifiedShow Answer

In 1944,the Bretton Woods (New Hampshire) Conference took place to establish the:

Correct AnswerverifiedShow Answer

The U.S.Department of Commerce prepares the balance of payments statement in the United States.

Correct AnswerverifiedShow Answer

According to the text,EMU will have a strategic impact on companies' following operations EXCEPT:

Correct AnswerverifiedShow Answer

The adoption of the euro in the European Union took place in 1990.

Correct AnswerverifiedShow Answer

The problem with tight exchange controls is that often they promote a _________________________.

Correct AnswerverifiedShow Answer

___________________ are those investments in enterprises or properties that are effectively controlled by residents of another country.

Correct AnswerverifiedShow Answer

The __________________________________ was established at Bretton Woods.

Correct AnswerverifiedShow Answer

Today,the global economy is increasingly dominated by three major currency blocs which include the U.S.dollar,the Japanese yen,and the euro.

Correct AnswerverifiedShow Answer

In Europe,EU regulations do not cross national boundaries.

Correct AnswerverifiedShow Answer

All of the following are purposes of the International Monetary Fund (IMF) EXCEPT:

Correct AnswerverifiedShow Answer

According to the text,the euro will have a major boon for __________________.

Correct AnswerverifiedShow Answer

To expand services for countries in monetary difficulties,the IMF created Special Drawing Rights (SDRs).

Correct AnswerverifiedShow Answer

The Economist publishes a PPP study every year based on McDonald's Big Mac hamburger.This index is called the Big Mac Induction.

Correct AnswerverifiedShow Answer

Explain the concept of managed float.

Correct AnswerverifiedA managed float allows for a limited amo...View AnswerShow Answer

Another creation of the Bretton Woods Agreement was the International Bank for Reconstruction and Development,known as:

Correct AnswerverifiedShow Answer

According to the text,the euro will also help companies to streamline their ____________________.

Correct AnswerverifiedShow Answer

Two economies which were severely affected by the South American financial crisis are Argentina and Chile.

Correct AnswerverifiedShow Answer

If payment for goods is to be made at some future date,the purchaser has the option of buying foreign exchange on the ________________ for delivery at some future Date.

Correct AnswerverifiedShow Answer

______________ float allows for a limited amount of government intervention to soften sudden swings in the value of a currency.

Correct AnswerverifiedShow Answer

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A managed float allows for a limited amo...
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