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Practice Questions
Currency Manipulation Practice Questions
Lets say the US wants to lower its exchange rate by printing more currency. This will shift the domestic supply curve ____________. If the US uses that new money to buy foreign currency, this will shift the foreign demand curve _____________.
*
a. rightward; down
b. leftward; down
c. rightward; up
d. leftward; up
If a country wants to boost exports, it can lower its exchange rate. This gives exporters an implicit _____________, but gives importer an implicit _____________.
*
a. subsidy; tax
b. tax; subsidy
c. subsidy; subsidy
d. tax; tax
Growth that results from currency manipulation does not create new wealth; rather, this can be thought of as a _____________ policy.
*
a. regulatory
b. fiscal
c. constituent
d. redistributive
A country pursuing a manipulative policy will have to pump more money into the economy to maintain a low exchange rate. Over time, this will cause prices to:
*
a. rise
b. fall
c. become very volatile
d. stagnate
Once a country releases more money into the economy, the government can “sterilize” that new currency by:
*
a. buying bonds
b. selling bonds
c. releasing it slowly over time
d. flooding the market with it all at once
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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
