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Practice Questions
Home Bias Practice Questions
Of the following countries, which one best tends to diversify across borders:
*
a. Hong Kong
b. United States
c. Canada
d. Sweden
One reason why a country might want to consider investing more in international markets is:
*
a. the transactions costs of doing so are low
b. they can diversify their risk portfolio
c. they are always less risky
d. they always provide better returns
Why might one be skeptical of the argument that transactions costs are preventing so many people from investing abroad?
*
a. transactions costs are not a real phenomena
b. historically, transactions costs have been very high
c. empirically, transactions costs are not prohibitive at the margin
d. people who are wealthy can afford to pay transactions costs
One reason to be skeptical of avoidance of double taxation as a reason why people don’t invest more abroad is that:
*
a. double taxation is not a problem in most places
b. many countries who don’t tax capital gains still have a home bias
c. it is very easy to avoid the problem of double taxation
d. double taxation is prohibited by international treaties
Which of the following is NOT an explanation that has been given for why people might have home bias when it comes to investments:
*
a. Overconfidence in their home country
b. they already have sufficiently diversified portfolios
c. they fear double taxation
d. they think transactions costs will be prohibitively high
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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
