Question 1

In what ways can private investors affect a currency's value? In what ways can a government's central bank affect the value of the state's currency? How are the role and the interests of the government different from that of a private investor?

Accepted Answer

The answer of In what ways can private investors affect...

Question 2

The policy reforms required by the International Monetary Fund (IMF) and World Bank to receive assistance are called _____ .

Accepted Answer

The policy reforms required by the IMF and World Bank to receive assistance are called Structural Adjustment Policies (SAPs).

Question 3

Austerity measures are often enacted in countries that suffer from large balance of payments deficits.  Which of the following is NOT a negative consequence of austerity measures?

Accepted Answer

Austerity measures are often enacted as a means of reducing deficits, so deficit reduction is actually a positive consequence of these measures. The other options listed (B, C, and D) are all negative consequences of austerity measures.

Question 4

Describe the Bretton Woods system.  Why did the United States leave the Bretton Woods system and adopt floating exchange rates to determine currency values?

Accepted Answer

The answer of Describe the Bretton Woods system.  Why did...

Question 5

The pooling of sovereignty to create a common currency and a single monetary system for members in a region is a(n) _____ .

Accepted Answer

The pooling of sovereignty to create a common currency and a single monetary system for members in a region is called a regional currency union. Examples of regional currency unions include the eurozone and the Eastern Caribbean Currency Union. Option A refers to a mutual agreement to reduce or eliminate trade barriers between two or more countries. Option C refers to a system of rules, institutions, and procedures that regulate international trade and financial transactions. Option D refers to an exchange rate that is determined by supply and demand in the foreign exchange market, without any government intervention.

Question 6

Describe the economic crisis of 2008. Describe the four stages of the crisis. What have been the impacts of the crisis? How has the crisis called into question the free market-oriented "Washington Consensus" that has dominated since World War II? How have the powerful countries dealt with the crisis?

Accepted Answer

The answer of Describe the economic crisis of 2008. Describe...

Question 7

What are some of the positive and negative consequences to globalization?  Why would autocratic regimes tend to refuse to integrate into the global economy more so than democratic regimes?  Explain your answer.

Accepted Answer

The answer of What are some of the positive and...

Question 8

The G-20 is a group of countries that meets to discuss ways to deal with financial crises.  This groups includes the G-7, the largest economies in the world, and what other group of countries?

Accepted Answer

The G-20 includes the G-7 (United States, Canada, France, Germany, Italy, Japan, and United Kingdom) and the largest emerging economies, such as Argentina, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.

Question 9

One phase of the Crisis of 2008 was _____.

Accepted Answer

Displacement refers to the shift of economic activity from one sector or region to another, and it played a significant role in the Crisis of 2008 as the housing sector boomed and then collapsed, causing significant disruptions in the broader economy. Arbitrage and capital controls are not directly related to this phase of the crisis, and underinflation is not a commonly used term in economic analysis of the crisis.

Question 10

Greece has dealt with debt issues for years while simultaneously suffering from a stagnant, lagging economy.  Some argue that Greece must slash spending and enact severe austerity measures.  Others argue that these measures will make Greece's economy even worse by increasing unemployment.  Explain both sides of this argument. Which do you agree with? Why?

Accepted Answer

The answer of Greece has dealt with debt issues for...

Quiz 10: The Globalization of International Finance

In what ways can private investors affect a currency's value? In what ways can a government's central bank affect the value of the state's currency? How are the role and the interests of the government different from that of a private investor?

The policy reforms required by the International Monetary Fund (IMF) and World Bank to receive assistance are called _____ .

Austerity measures are often enacted in countries that suffer from large balance of payments deficits. Which of the following is NOT a negative consequence of austerity measures?

Describe the Bretton Woods system. Why did the United States leave the Bretton Woods system and adopt floating exchange rates to determine currency values?

The pooling of sovereignty to create a common currency and a single monetary system for members in a region is a(n) _____ .

What are some of the positive and negative consequences to globalization? Why would autocratic regimes tend to refuse to integrate into the global economy more so than democratic regimes? Explain your answer.

The G-20 is a group of countries that meets to discuss ways to deal with financial crises. This groups includes the G-7, the largest economies in the world, and what other group of countries?

One phase of the Crisis of 2008 was _____.