Chap002 21 - C. fixed exchange rate that adjusts. D. a) and...

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86. According to the "Trilemma" a country can attain only two of the following three conditions: 1) A fixed exchange rate, (2) Free international flows of capital, (3) An independent monetary policy. This difficulty is also known as A. the incompatible trinity. B. the Trilemma. C. the Tobin tax. D. all three can be had at the same time 87. Another name for the incompatible trinity is the A. Tobin Tax. B. Triffin Paradox. C. Trilemma. D. None of the above 88. To avoid currency crisis in the face of fully integrated capital markets, a country can have a A. floating exchange rate. B. fixed exchange rate.
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Unformatted text preview: C. fixed exchange rate that adjusts. D. a) and b) can both help to avoid currency crises. 89. During the 1990s there A. were three major currency crises. B. were two major currency crises. C. was only one currency crisis. D. were no major currency crises 90. Which factors are related to the collapse of the Argentine currency board system and ensuing economic crisis? A. The lack of fiscal discipline on the part of the Argentine government B. Labor market inflexibility C. Contagion from the financial crises in Russia and Brazil D. All of the above...
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

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