22.1 Multiple Choice Questions
1) In the early 2000s, the Argentine government's fiscal policy guaranteed which of the following may take place?
2) In the early 2000s, what problem did the Argentine central bank face?
3) Foreign central banks
4) International financial transactions are most likely to affect the U.S. money supply when
5) Deliberate actions by a central bank to influence the exchange rate are known as
6) Foreign-exchange market interventions will always
7) International reserves are
8) If the Fed wants to increase the value of the dollar, it will
9) If the Fed wants to reduce the value of the dollar, it will
10) When a central bank buys foreign assets,
11) When a central bank buys foreign assets,
12) If the Fed buys $2 billion of short-term securities issued by the Bank of Japan and pays for them by writing a check for $2 billion,
13) If the Fed buys $2 billion of short-term securities issued by the Bank of Japan and pays for them by writing a check for $2 billion,
14) When the Fed sells foreign assets to buy domestic assets,
15) If the Fed sells foreign assets, the monetary base will
16) A sale of foreign assets by a central bank has the same effect on the monetary base as
17) An unsterilized foreign-exchange intervention occurs
18) When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called
19) If the Fed sterilizes the purchase of foreign assets,
20) If the Fed sells $1 billion of short-term securities issued by the Bank of Japan and at the same time purchases $1 billion of short-term securities issued by the U.S. Treasury,
21) If the Fed sterilizes the purchas...
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