Using the dollar as an exchange arrangement with no separate legal tender.
What is "dollarization" or hard peg?
100
The real interest rate plus inflation.
What is the nominal interest rate?
100
After this war the major allies came together to create postwar economic stability by establishing the International Monetary Fund.
What is World War II?
200
This central bank administrates the Euro.
What is the European Central Bank
200
Currency used in Japan.
What is Yen?
200
A country pegs its currency to another currency or basket of currencies.
What is a soft peg?
200
Theory about the relationship between inflation and interest rates.
What is the Fisher Effect?
200
As part of the Brenton Woods Agreement the IMF used the following to establish a benchmark by which each country's currency was valued against others.
What is Par Value?
300
These include foreign exchange reserves, IMF related assets, and gold.
What are central bank reserve assets.
300
Currency used in Russia.
What is a ruble?
300
Currencies that change according to market forces.
What is a floating arrangement?
300
Theory that the relationship between interest rates and exchange rates implies that the currency of the country with the lower interest rate will strengthen in the future.
What is the International Fisher Effect?
300
Currently, The IMF uses the following system as a way of pooling money contributed by member nations and can draw from it to lend to countries with an established limit to borrowing.
What is the Quota System?
400
This organization links together the central banks of the world.
What is the Bank for International Settlements.
400
This country issued a $100 trillion banknote in 2009 that was worth about $33.
What is the Zimbabwe dollar?
400
The Economist periodical uses this sandwich as an estimate of the exchange rate between a US dollar and another country's currency.
What is the "Big Mac" index?
400
A forcasting tool that uses trends in ecomomic variables to predict future exchange rates.
What is Fundamental forcasting?
400
This is an international reserve to supplement members holdings and expand global liquidity.
What are special drawing rights (SDRs)?
500
This system was set up as a means of creating exchange rate stability within the European Community.
What is the European Monetary System (EMS)?
500
Currencies that are fully convertible, such as the US dollar, the Euro, British pound, and Japanese Yen.
What is a hard currency?
500
This theory seeks to define the relationships between currencies based on relative inflation.
What is Purchasing Power Parity (PPP)?
500
A forcasting tool that uses past trends in exhange rates themselves to spot future trends in rates.
What is Technical forecasting?
500
This agreement resulted in an official drop of the value of the dollar against gold, and increase in the valie of each currency against gold and a widening of the exchange-rate flexibility.