When a government restricts the amount of money that can be sent out of the country...
When a government restricts the amount of money that can be sent out of the country and also restricts the uses to which the money can be put, that is referred to as
1 monetary inhibition.
2 foreign exchange hedging.
3 ad valorem duties.
4 exchange control.
Homework Answers
4. Exchange control
It is the method by which countries limit the flow of capital in and out of the country and restrict the way it would be used accordingly as well.
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When a government restricts the amount of money that can be sent
out of the country...
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The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. 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 causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
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1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
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Which of the following is NOT one of the rules for a gold standard? a. Each...
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1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
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because it doesn't need approval 1. The Federal Reserve is when making monetary policy decisions. a. decentralized; presidential and congressional b. independent within government; presidential and congressional c. decentralized; private sector d. independent within government; foreign 2. The organization within the Federal Reserve that determines monetary policy is: a. the Board of Governors b. the New York Federal Reserve District Bank c. the Federal Open Market Committee d. the Federal Monetary Control Committee 3. The Federal Reserve system hasdistrict banks....
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. 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 causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
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...
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