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True or False Quiz
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1
The international monetary system is the institutional arrangements that countries adopt to govern exchange rates.
A)True
B)False
2
A system under which the exchange rate for converting one currency into another is fixed is referred to as a pegged exchange rate.
A)True
B)False
3
The Canadian dollar was never part of the Gold Standard.
A)True
B)False
4
The Bretton Woods agreement called for a system of floating exchange rates that would be policed by the IMF.
A)True
B)False
5
The Bretton Woods agreement recognized that a rigid policy of exchange rates would be too inflexible.
A)True
B)False
6
The International Development Agency (IAD) is the official name for the World Bank.
A)True
B)False
7
A combination of government intervention and market forces caused the fall in the value of the dollar between 1985 and 1988.
A)True
B)False
8
Advocates of a fixed exchange rate system argue that removal of the obligation to maintain exchange rate parity restores monetary control to a government.
A)True
B)False
9
There is some evidence that adopting a pegged exchange rate regime does moderate inflationary pressures in a country.
A)True
B)False
10
When a country cannot service its foreign debt obligations, whether private sector or government debt, a banking crisis occurs.
A)True
B)False
11
The Canadian dollar has been rising against the U.S. dollar and this has helped U.S. studios filming in Canada.
A)True
B)False
12
The financial crisis that erupted across Southeast Asia during the fall of 1997 has emerged as the biggest challenge ever.
A)True
B)False
13
One criticism of IMF is that its rescue efforts are exacerbating a problem known to economists as moral hazard.
A)True
B)False





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