Monetary Policy
International Economics
Facts
100
British government can do two things to defend the value of the pound. One of them is to use foreign currency reserves to buy pounds, name the other
Use monetary policy to raise real interest rates or Sell bonds
100
In 1991 which country created a currency board setting 1 peso to 1 dollar
Argentina
100
Which Exchange Rate Mechanism did Britain belong to?
European Exchange Rate Mechanism
200
Using the same currency reduces transaction costs and promotes ...
price transparency
200
What did Pepsi get in exchange for the products they sold in the Soviet Union?
Stolichnaya Vodka
200
What is capital controls?
Imposing rules to make it more difficult for foreign capital to flee
300
Countries that share a currency give up their own ...
monetary policy.
300
In Iceland how much did the stock market fell by after the crisis in 2007?
90%
300
A study that looked at 52 poor countries, 1980-2001, found that capital controls are associated with ...
slow economic growth
400
Currency of a country with a large current account deficit will eventually begin to
depreciate
400
Name the investor who made 1 billion dollars in 1992
George Soros
500
China sells to the US and accumulates what in return
US bonds
500
A country with a booming economy will often have a currency that is ...
appreciating.
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