International Economics, 17e (Pugel)
Chapter 23 Internal and External Balance with Fixed Exchange Rates
zaha
1) Which of the following can be considered as domestic asts of a country's central bank?
A) Bank deposits at the central bank
B) The country's government bonds owned by the central bank
C) Foreign currency asts held by the central bank
D) Currency issued by the central bank
Answer: B
Difficulty: 1 Easy
Topic: From the Balance of Payments to the Money Supply
Bloom's: Remember
AACSB: Reflective Thinking
fighting是什么意思Accessibility: Keyboard Navigation
2) The sum of currency issued by the central bank and bank deposits at the central bank is called
A) the money supply.
B) domestic asts.
C) the monetary ba.
D) fractional rerves.
Answer: C
Difficulty: 1 Easy
Topic: From the Balance of Payments to the Money Supply
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Official intervention in the foreign exchange market to defend a fixed-exchange rate when the value of the country's currency is under downward pressure caus
A) international rerve holdings to fall.
B) a downward pressure on the country's interest rates.
C) no change in the liabilities of the central bank.
很好的英文D) the domestic money supply to ri.
Answer: A
Difficulty: 2 Medium
Topic: From the Balance of Payments to the Money Supply
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) Consider a country that has an official ttlements balance surplus and is experiencing upward pressure on the exchange-rate value of its currency. Which of the following will NOT be true in this context?
A) The central bank of this country must intervene to buy foreign currency and ll domestic currency.
B) Its balance sheet will show an increa in official international rerve holdings.
C) Its balance sheet will show an increa in its liabilities.
D) For the regular bank that is involved in the intervention transaction, the central bank decreas the bank's deposits at the central bank.
Answer: D
Difficulty: 2 Medium
Topic: From Money Supply Back to the Balance of Payments
Bloom's: Understand
AACSB: Reflective Thinking
globalAccessibility: Keyboard Navigation
5) A(n) ________ of the money supply in a country ________ the domestic interest rates.
A) expansion; increas
B) expansion; decreas
C) contraction; decreas
D) contraction; has no impact on
Answer: B
Difficulty: 2 Medium
Topic: From Money Supply Back to the Balance of Payments
Bloom's: Understand红星级导弹艇
杭州服装学校AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) A(n) ________ in a country's money supply caus international capital
A) expansion; outflows.
B) expansion; inflows.
C) contraction; outflows.
D) contraction; stock to stabilize.
Answer: A
Difficulty: 2 Medium
Topic: From Money Supply Back to the Balance of Payments
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
7) The initial impact of ________ the money supply ________ the balance of payments.
A) expanding; worns
B) expanding; improves
C) contracting; worns
D) contracting; has no effect on
Answer: A
Difficulty: 2 Medium
Topic: From Money Supply Back to the Balance of Payments
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
8) Assuming no effect on exchange rates, which of the following is likely to happen if the money supply in a country contracts?
A) Decline in the international price competitiveness
B) Ri in the interest rates
C) Fall in the inflow of financial capital
D) Ri in the real spending
Answer: B
Difficulty: 2 Medium
Topic: From Money Supply Back to the Balance of Payments
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) Following an expansion of the money supply, a government committed to maintaining a fixed exchange rate must
A) accept a surplus in its current account.
B) not u sterilized intervention.
C) increa its level of government expenditure and autonomous investments.
D) intervene in the foreign exchange market to ll foreign currency and buy domestic currency. Answer: D
Difficulty: 1 Easy
Topic: From Money Supply Back to the Balance of Payments
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) Which of the following indicates taking an action to rever the effect of official intervention on the domestic money supply?
A) Adjusting the country's interest rates
B) Implementing capital controls
C) Sterilization
D) Playing by the "rules of the game"
Answer: C
Difficulty: 2 Medium
eis
Topic: Sterilization
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) If a country starts with a surplus in its official ttlements balance, intervention to defend a fixed exchange rate will cau
A) the money supply to expand and the economy to grow.
B) both the money supply and the economy to contract.
C) the money supply to grow and the economy to contract.
D) the money supply to contract and the economy to grow.
Answer: A
Difficulty: 2 Medium
Topic: Sterilization
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
12) There are limits to the ability of monetary authorities to u sterilized intervention in the ca of a deficit becau
A) the central bank may be unwilling to increa its holdings of foreign currency beyond a certain limit.
B) the pressure from foreign countries to allow the domestic currency to appreciate will lead to large loss.
C) the central bank's ability to constantly obtain foreign currency for the sterilized intervention is constrained.
D) the export level is fixed and it cannot be allowed to drop.
Answer: C
Difficulty: 2 Medium
Topic: Sterilization
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
13) There are limits to the ability of monetary authorities to u sterilized intervention in the ca of a surplus becau
A) the central bank may be unwilling to increa its holdings of domestic currency.
B) foreign countries will increa political pressures on the country to allow its currency to appreciate.
C) the central bank's ability to constantly obtain foreign currency for the sterilized intervention is cons
trained.
D) the export level is fixed and it cannot be allowed to drop.
Answer: B
Difficulty: 2 Medium
Topic: Sterilization
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
14) Monetary policy under a fixed exchange-rate regime will be
A) more effective than fiscal policy.
B) more powerful with high capital mobility than with low capital mobility.
C) likely to cau large and persistent deficits.
the next is newD) constrained and relatively ineffective.
Answer: D
Difficulty: 1 Easy
Topic: Monetary Policy with Fixed Exchange Rates
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
15) If international capital flows are highly responsive to interest rates, expansionary fiscal policy will
A) lead to financial account surplus.
B) lead to financial account deficits.
croodsC) be totally ineffective.
D) lead to current account surplus.
Answer: A
Difficulty: 1 Easy
免费背单词软件Topic: Monetary Policy with Fixed Exchange Rates
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
