Deck 13: The International Financial System

Question 1

Which of the following is not affiliated or associated with the World Bank?

A) the International Finance Association
B) the International Bank for Reconstruction and Development
C) the International Development Association
D) the Bank for International Settlements

Answer 1

the Bank for International Settlements

Question 2

Figure 18-1
Which of the following would best explain the decrease in demand for dollars illustrated in Figure 18-1?

A) A decrease in U.S. prices, ceteris paribus
B) A decrease in U.S. interest rates, ceteris paribus
C) An increase in foreign incomes, ceteris paribus
D) A decrease in foreign interest rates, ceteris paribus

Answer 2

A decrease in U.S. interest rates, ceteris paribus

Question 3

Figure 18-2
Which of the following would best explain the increase in demand for dollars illustrated in Figure 18-2?

A) An increase in U.S. prices, ceteris paribus
B) A decrease in U.S. interest rates, ceteris paribus
C) An increase in foreign incomes, ceteris paribus
D) An increase in foreign interest rates, ceteris paribus

Answer 3

An increase in foreign incomes, ceteris paribus

Question 4

Figure 18-3
Which of the following would best explain the increase in the supply of dollars illustrated in Figure 18-3?

A) A decrease in U.S. prices, ceteris paribus
B) An increase in U.S. interest rates, ceteris paribus
C) An increase in U.S. incomes, ceteris paribus
D) An increase in foreign incomes, ceteris paribus

Question 5

Figure 18-4
Which of the following would best explain the decrease in the supply of dollars illustrated in Figure 18-4?

A) An increase in U.S. prices, ceteris paribus
B) An increase in U.S. interest rates, ceteris paribus
C) An increase in U.S. incomes, ceteris paribus
D) An increase in foreign incomes, ceteris paribus