What is the name for the set of regulations pertaining to flows of capital into and out of a country? A) capital controls B) target zone system C) crawling peg D) lead-lag operations ANSWER Answer: A
Date: September 19th, 2020
What is the name for the composite currency that consists of various units of other currencies? A) pegged currency B) seignorage C) basket of currency D) special drawing rights ANSWER Answer: C
Date: September 19th, 2020
What is the firm’s marginal profit contribution from sales under the proposed plan of initiating the cash discount? (See Table 14.7) A) $22,500 B) $40,000 C) $62,500 D) $100,000 ANSWER C
Date: September 19th, 2020
The exchange rate system in which a country allows the value of the currency to be determined by the market forces of supply and demand is known as a A) currency board. B) floating exchange rate. C) target zone. D) pegged exchange rate system. ANSWER Answer: B
Date: September 19th, 2020
In the ________ exchange rate system, the currency has limited flexibility and the rate is kept within a fixed band. A) currency board B) floating exchange rate C) target zone D) pegged exchange rate system ANSWER Answer: C
Date: September 19th, 2020
What is the name of the account in which many central banks require their banks to hold a percentage of the deposits as reserves at the central bank? A) retained earnings B) excess reserves C) margin account D) required reserves ANSWER Answer: D
Date: September 19th, 2020
The phenomenon of foreign currency driving out local currencies as a means of payment and a savings vehicle is known as ________. A) seigniorage B) dollarization C) sterilization D) devaluation ANSWER Answer: B
Date: September 19th, 2020
What is the name of the unit of account created by the IMF which is sometimes used to denominate contracts? A) European currency unit B) special drawing right C) floating currencies D) basket of currencies ANSWER Answer: B
Date: September 19th, 2020
What is the marginal investment in accounts receivable under the proposed plan? (See Table 14.7) A) $1,234,375 B) $1,382,500 C) $1,567,300 D) $1,841,570 ANSWER A
Date: September 19th, 2020
When the central bank attempts to influence the supply of money in a country by the sale or purchase of government bonds, the practice is known as ________. A) open market operations B) a sterilized float C) a dirty float D) changing the required reserves ANSWER Answer: A
Date: September 19th, 2020
