International Monetary System

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

member nations.
(c) Several unexpected economic shocks to member nations.
(d) All of the above


5. On May 1, 2004 ________countries joined the European Union enlarging it to a total of _________ members.
(a) 5 15
(b) 2 17
(c) 10 25
(d) 20 30



6. The 10 members that joined the European Union in May 2004 automatically assumed the euro as their national currency upon joining.
(a) True
(b) False


7. The Euro currency is fixed against other currencies on the international currency exchange markets, but allows member country currencies to float against each other.
(a) True
(b) False


8. According to the authors, what is the single most important mandate of the European Central Bank?
(a) Promote international trade for countries within the European Union.
(b) Price, in Euros, all products for sale in the European Union.
(c) Promote price stability within the European Union.
(d) Establish an EMU trade ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

have been hired as a consultant to the central bank for a country that has for many years suffered from repeated currency crises and depends heavily on the U.S. financial and product markets. Which of the following policies would have the greatest effectiveness for reducing currency volatility of the client country with the United States?
(a) Dollarization.
(b) An exchange rate pegged to the U. S. dollar.
(c) An exchange rate with a fixed price per ounce of gold.
(d) An internationally floating exchange rate.


13. Under a fixed exchange rate regime, the government of the country is officially responsible for
(a) intervention in the foreign ...

Succeed in your coursework without stepping into a library. Get access to a growing library of notes, book reports, and research papers in 2 minutes or less.

CITE THIS PAGE: