Homework Answers
The correct option is d.
This is because if the value of centre country currency was expected to rise, this implies that the value of the local currency will depriciate. In order to maintain the fixed exchange rate, the central bank of the domestic country would have to reduce increase the supply of the central country currency. Due to this, the periphery countries were incentivized to sell their reserves of the centre currency.
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Which of the following statements does not apply to the gold-exchange standard of currency valuation? If...
The exchange rates between currencies were determined by the amount of gold in each currency under...
The exchange rates between currencies were determined by the amount of gold in each currency under the gold standard. The gold standard collapsed because O A. there was too much gold in the world. O B. under a gold standard, countries could not control their money supplies O c. international trade is more difficult under a gold standard OD. too many countries were on the gold standard, and so the price of gold rose too high
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Which of the following is NOT true? Question 24 options: Under the gold standard, each currency...
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7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
Several factors affect the exchange rate of a currency with another currency. Which of the following...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
please answer all accordingly 1. In the nineteenth century many industrial countries adopted the gold standard...
please answer all accordingly
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Question 13. After 1973, the world never seemed to be able to return to the Bretton...
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true-false questions my nova - Yahoo Search Results MCC Single Sign a l Statements: (1) The...
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The exchange rates between currencies were determined by the amount of gold in each currency under the gold standard. The gold standard collapsed because O A. there was too much gold in the world. O B. under a gold standard, countries could not control their money supplies O c. international trade is more difficult under a gold standard OD. too many countries were on the gold standard, and so the price of gold rose too high
Which of the following is NOT one of the rules for a gold standard? a. Each country should fix the value of its currency in terms of gold. b. Capital controls should be used to conserve each country's gold holdings. c. There should be an unrestricted flow of gold between countries d. The central bank in each country should hold gold reserves in a direct relationship to the currency it issues. Which of the following best describes a situation in...
5. Interest rate parity Aa Aa E The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency...
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
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please answer all accordingly
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