Quiz 7 - Quiz 7 1. The principal currency to which others...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz 7 1. The principal currency to which others were linked in the European Exchange Rate Mechanism (during the European Monetary System) was: a. the French franc b. the British pound sterling c. the Italian lira d. the German Deutsche mark e. the Euro Answer: d 2. Which of the following is a central feature in the Asian currency crises? a. weak banking system b. government deficit c. high inflation d. low inflation Answer: a 3. A devaluation is when a country: a. allows its currency’s value to float. b. raises the fixed value of its currency. c. lowers the fixed value of its currency. d. allows its currency value to be set by the market. Answer: c 4. Suppose that on the gold standard, the U.S. fixes the price of an ounce of gold at $25. Great Britain fixes the price of gold at £16 per ounce. What is the implied exchange rate between the dollar and the pound? A) £1.5625 / $ B) $0.65 / £ C) $1.5625 / £ D) £0.65 / $ E) none of the above Ans: c 5. The central cause of the 1992 crisis in the European Exchange Rate Mechanism was
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/23/2010 for the course BUSINESS intb 3353 taught by Professor Prodon during the Spring '10 term at University of Houston.

Page1 / 2

Quiz 7 - Quiz 7 1. The principal currency to which others...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online