Terms in this set (36)
which of the following has nothing to do with the IMF?
firm strategy agreement
which of the following best illustrates the IMF policy of special drawing rights?
the IMF provide all counties with financial assistance in exchange for the country's agreement to adopt certain policies.
which of the following is a fundamental mission of the IMF?
an ability to stabilize the international monetary system.
which of the following is NOT a function of the IMF?
establish exchange rates between country currencies.
the IMF quota system performs which of the following functions?
determines the voting rights of individual members.
which of the following is an organization that is generally separate form a country's central bank and is responsible for issuing domestic currency that is typically anchored to a foreign currency?
each country has something similar to the US federal reserve system, which is responsible for the policies affecting the value of its currency. it is known as which of the following?
the Japanese yen is subject to intervention only in certain circumstances. which of the following type of exchange rate arrangements does this best demonstrate?
by 1947, the US held what percentage of the world financial gold reserves?
floating exchange rates are which of the following?
changed mostly according to market forces
the bank of international settlement in Basel, Switzerland, is owned by which one of the following government bodies?
a group uof central banks
which of the following did the euro replace for European nations?
which of the following has taken the lead in negotiating with Greece to help resolve its debt crisis?
which of the following is the best illustration of a soft currency?
a weak currency
which of the following may occur as a result of strengthening a currency's value?
create problems for exporters.
which of the following describes soft currency?
not fully convertible
if the domestic inflation rate is lower than that in a foreign country, which of the following is correct?
the domestic currency should be stronger than that of the foreign country.
which of the following best defines technical forecasting?
the use of current trends in exchange rates to spot future rate trends.
a forecaster repeats previous poor trading decisions, given this scenario, which of the following is occurring?
the forecaster is skewed by biases.
a US based manufacturer earns an additional $10 million for every penny the euro increases against the dollar. this scenario illustrates how exchange rate changes can influence which of the following financial decisions?
reporting financial results.
which of the following example is a result of conversion to the euro?
European banks updated their electronics networks in order to handle all aspects of monetary exchange.
which of the following options best compares production decision and marking decision?
moving to a county whose currency is losing value and is producing the product.
which of the following if true, would strengthen the argument for competing in the Chinese market?
tide's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets.
which of the following if true. would weaken the argument for operating company owned outlets?
under the franchise model, the franchisee bears significant financial burdens that would otherwise be paid by the larger organization.
which of the following was created at a meeting between the major allied government toward the close of world war II in an effort to bring economic stability and growth to the postwar world?
international monetary Fund
which of the following establish a par value for each currency initially quoted in terms of gold and the united states dollar?
Bretton woods agreement/
a country takes all of its currency out of circulation and replaces it with dollars. this illustrates which of the following examples of a hard peg?
Dollarization of currency.
which of the following is the best definition for dollarization of the currency?
using the dollar as an exchange arrangement with no separate legal tender.
European union nations signed the treaty of Maastricht in 1992 to accomplish political union and which of the following?
which of the following was set up as a means of creating exchange rate stability within the European Community?
European Monetary System
which of the following determines currency values in a floating world in the absence of government intervention?
supply and demand
which of the following closely approximates a price based on supply and demand for a currency, instead of a government controlled price?
which of the following uses trends in economic variables to predict future rate?
all of the following can be considered a bias that can skew forecasting EXCEPT which?
use of fundamental prediction of outside forecasters.
exchange rates can influence all of the following for a best EXCEPT__?
cross border remittance of funds
marketing managers watch exchange rates because they can affect which of the following for a company products?
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Practice Questions D311 Exam 1