Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
In the case with Turkey, like most IMF programs, the focus was:
A)to bring down the inflation rate.
B)to stabilize the currency.
C)to restructure the economy.
D)to reduce government debt.
E)all of these answers are correct
2
A(n) _______ is a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand.
A)pegged exchange rate
B)dirty-float system
C)international monetary system
D)fixed exchange rate
E)floating exchange rate
3
Under _______, the value of most currencies in terms of U.S. dollar was fixed for long periods.
A)floating rate system
B)managed exchange rate system
C)fixed exchange rate system
D)dirty float system
E)constant rate system
4
Some countries may try to hold the value of their currency within some range against an important reference currency
A)floating rate system.
B)managed exchange rate system.
C)fixed exchange rate system.
D)dirty float system
E)constant rate system.
5
Pegging currencies to gold and guaranteeing convertibility is known as the:
A)Convertibility standard of currency
B)Convertibility standard of precious metals
C)Gold standard
D)Gold convertibility
E)None of these answers is correct
6
The ______ and the ______ are the two major international institutions created by the Bretton Woods conference.
A)WTO, GATT
B)IMF, World Bank
C)WTO, IMF
D)World Bank, WTO
E)GATT, IMF
7
The purpose of the IMF is to stand ready to lend foreign currencies to members to
A)To keep tight control on developing nations.
B)To create hyperinflation to boost world economy.
C)Building Europe's economy by providing low-interest loans.
D)Tide them over during short periods of balance-of-payments deficits
E)To promote development.
8
Which of these represented the primary task of the World Bank?
A)Promote reconstruction and development.
B)Maintaining order in the international monetary system.
C)Monitor the gold standard.
D)Serve as intermediary between developing nations on the issue of convertibility.
E)Monetary discipline.
9
The previous system of fixed exchange rates worked well until it collapsed in 1973, since then we have
A)A managed-float system – or dirty-float system
B)Convertibility standard of precious metals
C)Gold standard
D)Monetary discipline.
E)Dollar/euro based system
10
Speculation
A)Has no effect on currency movements
B)Effects only fixed rates
C)adds to the uncertainty surrounding future currency movements
D)Effects only floating rates in 3rd world countries
E)Helps stabilize currencies
11
Under a pegged exchange rate regime, a country will peg the value of its currency to
A)A managed-float system
B)A major currency such as the U.S. dollar
C)Monetary discipline
D)IMF, World Bank
E)Convertibility standard of currency
12
A body holding foreign currency reserves equal to the amount of domestic currency issued at a fixed exchange rate is called a(n):
A)Currency board.
B)IAD.
C)internal audit agency.
D)Group of five (G5).
E)None of these answers is correct.
13
Since 1973, exchange rates have become:
A)Less volatile and more predictable.
B)More volatile and less predictable.
C)Stabile in most countries.
D)Unstable in the OECD.
E)None of these answers is correct
14
In recent years the IMF's activities have
A)Lessened due to fewer economies in trouble
B)Lessened due to globalization
C)Declined in general
D)Expanded because periodic financial crises have continues to hit
E)Expanded because taxes are high
15
The _______ has repeatedly lent money to nations experiencing financial crises, requesting that recipients enact certain policies.
A)WTO
B)UN
C)IMF
D)EU
E)NAFTA
16
Which of the following crises occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency?
A)Market-based economy crisis
B)Currency crisis
C)Banking crisis
D)Foreign debt crisis
E)IMF crisis
17
The Third World Debt crisis has its roots in the
A)Market-based economy crisis
B)OPEC oil price hikes in 1973 and 1979
C)Banking crisis
D)Foreign debt crisis
E)IMF crisis
18
A continued strong Canadian dollar, threatened interventions from the governor of California and a weak US dollar have negatively effected
A)The Canadian grain industry
B)The Canadian tourism
C)The Canadian banking sector
D)The Canadian film industry
E)The Canadian auto industry
19
Giant diversified conglomerates from _______ refers to chaebol.
A)Philippines
B)Thailand
C)South Korea
D)Malaysia
E)Indonesia
20
A criticism of IMF is its:
A)one-size-fits all approach.
B)relaxed monetary discipline.
C)lack of control over government.
D)funds spread over too many countries.
E)lack of focus on promoting development.
21
"Moral hazard" arises when people behave recklessly and is a term associated with the circumstances of:
A)IMF involvement in a country's economic planning.
B)World Bank involvement in a country's economic planning.
C)the 1995 Mexican currency crisis.
D)the third world debt crisis of the 1980s.
E)NAFTA regulations.
22
When people behave recklessly because they know they will be saved if things go wrong, _______ arises.
A)ethical problems
B)need for retraining
C)lack of accountability
D)moral hazard
E)need for employee evaluations





To learn more about the book this website supports, please visit its Information Center.
(c)2009 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Global Business TodayOnline Learning Center

Home > Chapter 10 > Multiple Choice Quiz