Details of this Paper

Chapter 2: World Trade and the International Monetary System




Question;15. Financial aid packages provided by the IMF to;countries in a currency crisis are often tied to reforms that include ______.;a. a;coup d??tat;b. changes;in ruling parties;c. financial;market liberalizations;d. imposition;of military rule to reestablish stability;e. None;of the above;Ans: c;16. Common elements in many currency crises;include each of the following EXCEPT;a. a;fixed exchange rate system that overvalued the local currency;b. a;large amount of foreign currency debt;c. a;precipitous drop in the value of the local currency;d. IMF;intervention to provide short-term assistance;e. All;of the above are common during currency crises;Ans: e;17. Critics of IMF lending policies during;financial crises FAVOR which of a) through d)?;a. fiscal;restraint;b. immediate;financial market liberalization;c. monetary;restraint;d. temporary;IMF loans;e. Critics;are against each of these policies;Ans: e;18. Causes of the global financial crisis of 2008 included each of the;following EXCEPT;a. a;lack of financial market liquidity;b. a;lack of regulatory oversight of mortgage lending;c. lax;credit requirements for U.S. homeowners;d. subprime;loans of poor credit quality;e. the;divergence in economic performance between developed and emerging market;economies;Ans: e;19. One of the first symptoms of the 2008 financial crisis was;a. a decrease in the default risk of collateralized;debt obligations (CDOs);b. currency market volatility;c. a wave of corporate bankruptcies and;government bailouts;d. government intervention in the currency;markets;e. illiquidity in the market for collateralized;debt obligations (CDOs);Ans: e


Paper#55216 | Written in 18-Jul-2015

Price : $22