02 - 02 Student: _ 1. The international monetary system can...

This preview shows page 1 - 2 out of 18 pages.

The preview shows page 1 - 2 out of 18 pages.
02Student: ___________________________________________________________________________1.The international monetary system can be defined as the institutional framework within which:A. international payments are madeB. movement of capital is accommodatedC. exchange rates among currencies are determinedD. all of the above
2.Corporations today are operating in an environment in which exchange rate changes may adversely affecttheir competitive positions in the marketplace. This situation, in turn, makes it necessary for many firmsto
3.The international monetary system went through several distinct stages of evolution. These stages aresummarized, in alphabetic order, as follows(i) Bimetallism(ii) Bretton Woods system(iii) Classical gold standard(iv) Flexible exchange rate regime(v) Interwar periodThe chronological order that they actually occurred is:
4.In the United States, bimetallism was adopted by the Coinage Act of 1792 and remained a legal standarduntil 1873,
5.The monetary system of bimetallism is unstable. Due to the fluctuation of the commercial value of themetals,A.the metal with a commercial value lower than the currency value tends to be used as metal and iswithdrawn from circulation as money (Gresham's Law).B.the metal with a commercial value higher than the currency value tends to be used as money(Gresham's Law).C.the metal with a commercial value higher than the currency value tends to be used as metal and iswithdrawn from circulation as money (Gresham's Law).D. None of the above
6.In the 1850s the French franc was valued by both gold and silver, under the official French ratio whichequated a gold franc to a silver franc 15½ times as heavy. At the same time, the gold from newlydiscovered mines in California poured into the market, depressing the value of gold. As a result,

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 18 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture