Exchange-Rate Systems & Currency Crises Mcqs
Exchange-Rate Systems & Currency Crises Mcqs, this topic has 10 mcqs, It takes five to ten minutes to complete this free Exchange-Rate Systems & Currency Crises Mcqs test. You will see 4 or 5 option of each question. You must choose / think only one option and then press on answer key for check right answer. Practice "Exchange-Rate Systems & Currency Crises Mcqs" MCQs and share with your friends, brothers, sisters.
Exchange-Rate Systems & Currency Crises Mcqs (Total Quiz: 10)
MCQ: Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ?
- pegged exchange rates
- freely floating exchange rates
- managed floating exchange rates
- crawling exchange rates
A
MCQ: Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?
- very high rates of inflation occur domestically
- foreigners discriminate against domestic products
- technological advance is superior abroad
- the domestic currency is undervalued relative to other currencies
D
MCQ: Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?
- appreciates against foreign currencies
- depreciates against foreign currencies
- be officially revalued by the government
- be officially devalued by the government
A
MCQ: Which exchange rate mechanism in intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions ?
- dual exchange rates
- managed floating exchange rates
- adjustable pegged exchange rates
- crawling pegged exchange rates
A
MCQ: Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?
- pegged of fixed exchange rates
- adjustable pegged exchange rates
- managed floating exchange rates
- free floating exchange rates
B
MCQ: Small nations with more than one major trading partner tend to peg the value of their currencies to ?
- gold
- silver
- a single currency
- a basket of currencies
D
MCQ: Which exchange rate system does not require monetary reserves for official exchange rate intervention ?
- floating exchange rates
- pegged exchanged rates
- managed floating exchange rates
- dual exchange rates
A
MCQ: Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?
- U.S exports tend to rise, and imports tend to fall
- U.S imports tend to rise, and exports tend to fall
- U.S foreign exchange reserves tend to rise
- U.S foreign exchange reserves remain constant
B
MCQ: Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?
- dual exchange rate
- adjustable pegged exchange rates
- managed floating exchange rates
- crawling pegged exchange rates
D
MCQ: The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?
- freely fluctuating exchange rates
- adjustable pegged exchange rates
- managed floating exchange rates
- pegged or fixed exchange rates
C