38. A _____ means the value of the currency is fixed relative to a reference currency, and then
the exchange rate between that currency and other currencies is determined by the reference
currency exchange rate.
39. Many of the world’s developing nations peg their currencies, primarily to the _____.
40. In a floating exchange rate, the relative value of a currency:
41. _____ refers to a system under which a country’s currency is nominally allowed to float
freely against other currencies, but in which the government will intervene, buying and selling
currency, if it believes that the currency has deviated too far from its fair value.
42. Which of the following statements is true about the various exchange rate systems?
43. The ____ refers to a system to regulate fixed exchange rates before the introduction of
the euro.
44. The values of a set of currencies are set against each other at some mutually agreed on
exchange rate in a _____ exchange rate system.
45. The 1944 Bretton Woods conference created two major international institutions that play
a role in the international monetary system—the International Monetary Fund (IMF) and the
_____.
46. The 1944 Bretton Woods system called for _____ exchange rates against the U.S. dollar.
47. Which of the following refers to the gold standard?
48. Which of the following is a reason for the emergence of the gold standard?
49. In terms of the gold standard, the amount of currency needed to purchase one ounce of
gold was referred to as the _____.
50. A country is said to be in _____ when the income its residents earn from exports is equal
to the money its residents pay to other countries for imports.
51. Which of the following is a great strength of the gold standard?
52. Which of the following statements is true about the gold standard?
53. In the 1930s, confidence in the _____ was shattered because countries were devaluing
their currencies at will in order to boost exports.
54. Certovia and Norkland are two neighboring countries that actively trade goods and
services with each other. Under the gold standard, there will be a net flow of gold from Norkland
to Certovia when:
55. Argonia Republic is in trade surplus with Kamboly. Under the gold standard, which of the
following statements is true until a balance–of-trade equilibrium is achieved?
56. Which of the following was a reason that led to the collapse of the gold standard in
1939?
57. According to the _____ in 1944, all countries were to fix the value of their currency in
terms of gold but were not required to exchange their currencies for gold.