98. Which of the following is an argument for a floating exchange rate system?
99. In comparison to a floating exchange rate regime, a fixed exchange rate system is
characterized by:
100. Critics of floating exchange rates claim that trade deficits are determined by the:
101. Which of the following has some aspects of the pre-1973 Bretton Woods exchange rate
system?
102. A(n) _____ system refers to an exchange rate system under which a country’s exchange
rate is allowed to fluctuate against other currencies within a target zone.
103. An advantage of a pegged exchange rate system is that it imposes monetary discipline on
a country and leads to low _____.
104. Which of the following holds true for a pegged exchange rate system?
105. It has been shown that adopting a _____ exchange rate regime moderates inflationary
pressures in a country.
106. A country that introduces a _____ commits itself to converting its domestic currency on
demand into another currency at a fixed exchange rate.
107. How does a country that introduces a currency board make its commitment to converting
its domestic currency on demand into another currency at a fixed exchange rate credible?
108. Which of the following statements is true about a currency board system?
109. During the 1997 Asian currency crisis, the currency board of _____ maintained the value
of its currency against the U.S. dollar.
110. Which of the following is a drawback of the currency board system?
111. Since the early 1970s, developed countries such as Great Britain and the United States
have financed their trade deficits by:
112. Which of the following is a reason why Great Britain and the United States could finance
their deficits by borrowing private money since the early 1970s?
113. Which of the following observations about the International Monetary Fund (IMF) is
true?
114. Which of the following is an implication of a currency crisis?
115. Which of the following is true of a banking crisis?
116. Which of the following statements is true about financial crises?
117. Which of the following is a common underlying macroeconomic cause of financial
crises?