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Home  arrow Student Resources  arrow Chapter 9: Global Finance and Business  arrow Multiple Choice Questions

Multiple Choice Questions



This activity contains 23 questions.

Question 1.
In 1971 the U.S. abandoned the gold standard because the ___________.


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Question 2.
Hard currency is


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Question 3.
The state in which an MNC has its headquarters is called the


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Question 4.
When governments intervene to manage otherwise free-floating exchange rates, it is known as


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Question 5.
Between World War II and the 1970s, what type of exchange rates existed in the international economic system?


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Question 6.
Foreign investments in and by a country are referred to as


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Question 7.
________ policy is government decisions about spending and taxation.


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Question 8.
The 1997 Asian financial crisis began when _____________.


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Question 9.
A ________ is responsible for maintaining the value of a state's currency to the extent that it can by limiting the amount of money printed and avoiding inflation.


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Question 10.
The U.S. Federal Reserve affects the economy by _____________.


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Question 11.
What institution coordinates international currency exchange, the balance of international payments, and national accounts?


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Question 12.
When governments spend more than they take in to stimulate economic growth, it is called


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Question 13.
A unilateral move to reduce the value of one's own currency by changing a fixed or official exchange rate is known as


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Question 14.
In 1997 and 1998, ________ requested tens of billions of dollars in loans from the IMF, but resisted the conditional structural adjustments required by the IMF.


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Question 15.
The Russian economy has been helped in recent years by exporting


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Question 16.
The most important MNCs are


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Question 17.
Which of these statements about MNCs is FALSE?


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Question 18.
Foreign direct investment


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Question 19.
Which of the following does NOT lead to conflict between MNCs and host governments?


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Question 20.
The Special Drawing Right (SDR) refers to __________.


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Question 21.
Hyperinflation refers to


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Question 22.
Why are governments at a disadvantage in their interventions in international currency markets?


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Question 23.
What will happen if the Fed sets too low a discount rate?


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