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.
Add Answer to:
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
Which of the following is NOT one of the rules for a gold standard? a. Each...
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...
Which of the following is NOT true? Question 24 options: Under the gold standard, each currency...
Which of the following is NOT true? Question 24 options: Under the gold standard, each currency was convertible into gold at a specified rate, and the exchange rate between two currencies was determined by their relative convertibility rates per ounce of gold. Bretton Woods Agreement called for fixed exchange rates between currencies. Under the Smithsonian Agreement, each currency was convertible into gold at a specified rate, and the exchange rate between two currencies was determined by their relative convertibility rates...
The gold system is a monetary system where a country’s currency is directly linked to gold. A country that uses the gold standard sets a fixed price for gold and that price determines the value of the...
The gold system is a monetary system where a country’s currency is directly linked to gold. A country that uses the gold standard sets a fixed price for gold and that price determines the value of the currency. The gold standard was first put into operation in the UK in 1821. The UK stopped using it in 1931 and the US followed suit in 1933. The gold standard is currently not used by any government. The appeal of the gold...
5. Interest rate parity Aa Aa E The rise of globalization is due to the many...
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...
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
1. In the nineteenth century many industrial countries adopted the gold standard because adopted the gold standard. a. Britain b. France c. Germany d. United States e. China 2. Under the gold standard a country whose prices were unusually high compared with the rest of the world would find that it would__gold, and that its prices would a, gain, fall into line with the rest of the world b. gain, rise still farther out of line...
Question 13. After 1973, the world never seemed to be able to return to the Bretton...
Question 13. After 1973, the world never seemed to be able to return to the Bretton Woods system of fixed exchange rates. One reason often cited for this is that after 1973, OPEC sharply raised the dollar price of oil sold on world markets. For countries other than the US, the abandonment of fixed exchange rates turned into a blessing, in light of the increase in the world price of oil. This is because: A. With higher oil prices, these countries’...
true-false questions my nova - Yahoo Search Results MCC Single Sign a l Statements: (1) The...
true-false questions
my nova - Yahoo Search Results MCC Single Sign a l Statements: (1) The purpose of economic analysis is to assess the overall outlook of the economy and the impact of economic changes on the firm. (2) The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm. (3) International economic analyses should provide economic data on both actual and prospective markets. (4) A common basis for assessing economic development...
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
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 because adopted the gold standard. a. Britain b. France c. Germany d. United States e. China 2. Under the gold standard a country whose prices were unusually high compared with the rest of the world would find that it would__gold, and that its prices would a, gain, fall into line with the rest of the world b. gain, rise still farther out of line...
true-false questions
my nova - Yahoo Search Results MCC Single Sign a l Statements: (1) The purpose of economic analysis is to assess the overall outlook of the economy and the impact of economic changes on the firm. (2) The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm. (3) International economic analyses should provide economic data on both actual and prospective markets. (4) A common basis for assessing economic development...
Most questions answered within 3 hours.
-
Feynman's use of path integrals can make some of the transition
from quantum scale to real...
asked 18 seconds ago -
The following circuits (1 & 2) are combined to form a
series-parallel circuit and resulting circuit...
asked 1 minute ago -
Pb(NO3)2 (aq) + 2 KCl (aq) PbCl2 (s) + 2 KNO3 (aq)
If 54.5mL of 3.82M...
asked 1 minute ago -
Razeghi (2008) states "In order to succeed at innovation, do not
focus on being creative; rather...
asked 7 minutes ago -
How much heat is required at constant pressure to melt 1 mole of
ice at -25...
asked 10 minutes ago -
Suppose N is a discrete random variable defined by probability
distribution:
n
Pr(N = n)
10...
asked 11 minutes ago -
why are special-interest travelers becoming more important to
tourism service suppliers?
asked 15 minutes ago -
A 50.0-kg child takes a ride on a Ferris wheel that rotates four
times each minute...
asked 37 minutes ago -
What happens to the distribution of gene alleles when a
reproductive isolation arises between different population...
asked 35 minutes ago -
1 – Balance the following
Bi(OH)3 + SnO22- →
SnO32- +
Bi
asked 48 minutes ago -
Explain what we mean by "The electric field at the point marked
X is 10 N/C."...
asked 1 hour ago -
What is the positive energy states in Dirac’s picture? It says
that it leaves an empty...
asked 58 minutes ago