12) If the world is experiencing negative pressure on the global currency system, the organization that is providing leadership to stabilize their exchange rates is the O A. Bank of England B. International Financial Corporation C. International Exchange Rate Commission D. International Monetary Fund

12) If the world is experiencing negative pressure on the global currency system, the organization that is providing leadership to stabilize their exchange rates is the O A. Bank of England B. International Financial Corporation C. International Exchange Rate Commission D. International Monetary Fund

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter31: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Similar questions

Why would a nation dollarizeâ€”that is, adopt another countrys currency instead of having its own?
Is a country for which imports and exports comprise a large fraction of the GDP more likely to adopt a flexible exchange rate or a fixed (hard peg) exchange rate?
This chapter has explained that one of the most economically destructive effects of exchange rate fluctuations can happen through the banking system, if banks borrow from abroad to lend domestically. Why is this less likely to be a problem for the U.S. banking system?
A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise indefinitely. Why not?
Suppose U.S. interest rates decline compared to the rest of the world. What would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, euros?
A British pound cost 2.00 in U.S. dollars in 2008, but 1.27 in U.S. dollars in 2017. Was the pound weaker or stronger against the dollar? Did the dollar appreciate or depreciate versus the pound?
Does a higher rate of return in a nations economy, all other things being equal, affect the exchange rate of its currency? If so, how?
What is the foreign exchange market?
Why does the trade balance and the current account balance track so closely together over time?
Suppose that political unrest in Egypt leads financial markets to anticipate a depreciation in the Egyptian pound. How will that affect the demand for pounds. supply of pounds, and exchange rate for pounds compared to, say, U.S. dollars?
What are some of the reasons a central bank is likely to care, at least to some extent, about the exchange rate?
If the government wants to O decrease; contractionary O increase; expansionary O increase; only rules-based O decrease: expansionary the value of its currency in the foreign exchange market, it can use monetary policy.