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Practice Questions
Gold Exchange Standard Practice Questions
One way that a gold exchange standard differs from the classical gold standard is that:
*
a. your dollars are no longer backed by gold
b. gold is not as valuable under a gold exchange standard
c. you don’t have direct convertibility
d. your dollars are not a store of value
One reason that the direct link between gold and paper money was broken was that:
*
a. countries were unable to pursue independent monetary policy under the classical gold standard
b. countries needed to inflate their currency to pay for WWI
c. gold was no longer considered an adequate backing for money
d. the public no longer wanted a gold standard
Because many countries did not hold enough gold to go back to the pure gold standard after WWI, the currencies of _____________ and ______________ became the two reserve currencies across the world.
*
a. US dollar; British pound
b. British pound; French franc
c. German deutschmark; US dollar
d. French franc; German deutschmark
After WWI, the British overvalued their currency, creating _____________ pressure on the price level. This made exports too ______________ on world markets, leading to a slowdown in export activity.
*
a. upward; expensive
b. upward; cheap
c. downward; expensive
d. downward; cheap
Debtor countries had a hard time paying back their debts because they lacked gold. This resulted in ______________ pressure on their currency systems.
*
a. escalating
b. stagflationary
c. inflationary
d. deflationary
In 1931, the UK went off the gold standard because their overvalued currency led to _______________.
*
a. speculative attacks
b. capital flight
c. rapid inflation
d. expansionary monetary policy
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International Finance
Course
(55 videos)
Introduction to International Trade and Finance
Balance of Payments
Practice Questions
Purchasing Power Parity
Practice Questions
David Hume on the Balance of Trade
Practice Questions
Isaac Gervaise
Practice Questions
Exchange Rates
Real Exchange Rates
Practice Questions
Real and Nominal Exchange Rates
Practice Questions
Are Devaluations Contractionary?
Practice Questions
Forward Exchange Rates
Practice Questions
Covered Interest Parity
Practice Questions
Uncovered Interest Parity and the Carry Trade
Practice Questions
Speculative Attacks
Practice Questions
The “Peso Problem”
Practice Questions
Long Swings in Exchange Rates
Practice Questions
Swiss Franc Peg
Practice Questions
Bela Balassa
Practice Questions
Currency Issues
The Classical Gold Standard
Practice Questions
Gold Exchange Standard
Practice Questions
Bretton Woods
Practice Questions
Reserve Currencies
Practice Questions
Safe Haven Currencies
Practice Questions
Capital Controls
Practice Questions
Currency Manipulation
Practice Questions
Chinese Currency Manipulation
Practice Questions
Borrowing in Your Own Currency
Practice Questions
The Euro Crisis
The Three Sides of the Crisis
Practice Questions
The Case for Optimism
Practice Questions
The Case for Pessimism
Practice Questions
European Central Bank
Practice Questions
The Bailout Funds
Practice Questions
Why are high bond yields a problem?
Practice Questions
The Italian Crisis of 2013
Practice Questions
The costs of leaving the Eurozone
Practice Questions
Remarks on individual countries
Practice Questions
Currency union collapse in history
Practice Questions
Indicators for Eurozone progress
Practice Questions
Life on the precipice
Practice Questions
Will austerity work?
Practice Questions
Effects on other multilateral agreements
Practice Questions
Optimum currency areas
Practice Questions
Optimum currency areas and the Euro
Practice Questions
Why is the Euro so bland?
Tyler Cowen lecture at the Bruno Leoni Institute (Optional)
Understanding the Eurocrisis (Optional)
Iceland: Causes of the Crisis
Iceland: Collapse
International Trade Overview
Trade Imbalances
Practice Questions
Dark Matter
Practice Questions
The “Dutch Disease”
Practice Questions
Home Bias
Practice Questions
Introduction to Mercantilism
Practice Questions
Adam Smith on Mercantile Systems
Practice Questions
Adam Smith on Mercantile Conclusions
Practice Questions
Crises and Responses to Them
Asian Financial Crisis of 1997
Practice Questions
Mexico and the 2008 Financial Crisis
Sudden Stops
Practice Questions
