After reading Chapter 9, the student should be able to answer the following questions: 1. Describe the evolution of world currencies and how currencies are exchanged for each other. 2. Describe the role of governments managing the global currency market, and explain how and why governments intervene in the market. 3. Compare and contrast fixed exchange rates, floating exchange rates, and a managed float. 4. Discuss the reasons why currency values rise and fall and the role central banks play in manipulating the value of currencies. 5. Discuss the structure and functions of the international financial institutions that support the international monetary system. 6. Define the concepts of balance of payments, current account, capital flows, foreign exchange reserves, and standing wealth. 7. Discuss international debt, its causes, and its consequences. 8. Explain how the U.S. transition from status as a creditor state to that of a debtor state came about. 9.
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