1. The exchange rate for converting the U.S dollar into other currencies is continuosly adjusted depending on the laws of supply and demand. this illustrates a ______ exchange rate.
A) Flexible B) Pagged C) Dirty-float D) Real E) Floating
2. Which of the following refers to a system under which a country's currency is normally allowed to float freely against other currencies but in which the goverment will intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value?
A) Fixed float system B) Dirty- float system C) Floating exchange rate system D) pagged exchange rate system E) Clean float system
3. Which of the following refers to the amount of currency needed to purchase one ounce of gold?
A) Gold par value B)Gold mix ratio C)Balance of trade equilibrium D) gold reserve ratio E) gold margin
4. The bretton woods agreement created which of the following two multinational institutions?
A) The united nations and the world bank B) the world trade organization and the international monetary fund
C) The world bank and the G20 D) The international monetary fund and the world bank E) The united nations and the world trade organization.