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Practice Questions
Long Swings in Exchange Rates Practice Questions
Why might the momentum explanation of exchange rate swings run contrary to the efficient markets hypothesis?
*
a. Traders would have to suffer from cognitive biases
b. It suggests that risk is not a significant factor in trading decisions
c. Traders could gain by taking advantage of this momentum
d. It suggests that markets are actually not efficient
Why might a trader be wary of trading against where they perceive the exchange rate to be moving?
*
a. They could be feeding an inflationary bubble
b. There could be periodic regime switching
c. They could create pressure for financial contraction
d. Speculators may distort the signals in exchange markets
What is one reason the long swings idea is a hypothesis and not an established truth?
*
a. It held up better in the ‘80s than in recent years
b. Exchange rates have been proven to follow a random walk
c. Long swings are inconsistent with the efficient market hypothesis
d. The direction of movement switches more than theory would predict
If traders knew the direction momentum would take, they could gain significantly by:
*
a. speculating on international asset values
b. limiting risk exposure by investing in bonds instead
c. diversifying their portfolio with many currencies
d. trading against the projected direction of exchange rate movement
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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
