322-23

Card Set Information

Author:
SAngell3
ID:
223268
Filename:
322-23
Updated:
2013-06-10 15:24:56
Tags:
322 23
Folders:

Description:
322-23
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user SAngell3 on FreezingBlue Flashcards. What would you like to do?


  1. Central bank intervention in the currency markets is usually temporary, designed to aid in a smooth adjustment to a new equilibrium level rather than permanently prop up a weak currency.  

    A) True  
    B) False
    A) True  
  2. In the capital and financial accounts, short-term capital flows reflect purchases of financial assets with maturities of under 6 months.  

    A) True  
    B) False
    B) False
  3. The funds loaned by the IMF come mainly from quotas, which each member nation must contribute in dollars or other official reserve assets.  

    A) True  
    B) False
    A) True  
  4. The United States has officially adopted a managed float policy, and in practice its monetary authorities intervene frequently in the market for its currency.  

    A) True  
    B) False
    B) False
  5. A U.S. corporation will see its profits eroded if the currency it expects to receive in payment for its goods, which are sold under contract months before, experiences a decline in market value.  

    A) True  
    B) False
    A) True  
  6. In 2008, the United States balance of payments (BOP) was a negative:  

    A) $706 billion.  
    B) $583 billion.  
    C) $257 billion.  
    D) $727 billion.  
    E) none of the above
    A) $706 billion.  
    (this multiple choice question has been scrambled)
  7. In 2008, the dollar amount of services imported into the United States was less than the services exported from the United States by nearly:  

    A) $50 billion.  
    B) $75 billion.  
    C) $100 billion.  
    D) $150 billion.  
    E) none of the above
    D) $150 billion.  
    (this multiple choice question has been scrambled)
  8. The United States can consume more than it produces, provided it _______________, by issuing debt to finance the consumption.  

    A) establishes a payment plan  
    B) borrows from overseas  
    C) borrows from Social Security  
    D) borrows from the United States trade representative  
    E) none of the above
    B) borrows from overseas  
    (this multiple choice question has been scrambled)
  9. The right to buy or sell currency futures as a contract for the buyer is called a(n):  

    A) currency option.
    B) currency futures.  
    C) forward contract.  
    D) currency swap.  
    E) option on currency futures.  
    E) option on currency futures.  
    (this multiple choice question has been scrambled)
  10. Using two different currencies, one for the principle and one for the interest, is a debt security known as:  

    A) dual currency bonds.  
    B) indexed Eurobonds.  
    C) currency-denominated bonds.  
    D) foreign-exchange bonds.  
    E) none of the above
    A) dual currency bonds.
    (this multiple choice question has been scrambled)

What would you like to do?

Home > Flashcards > Print Preview