1)

Financial intermediaries necessarily absorb most of the savings going into them and thereby reduce the possibility of economic growth through greater levels of investment.

(1.5pts)

True False

2)

There are currently no organizations that can facilitate multilateral policy coordination that might stem an international financial crises.

(1.5pts)

True False

3)

Portfolio capital inflows decrease the value of a nations currency, spurring inflation and exports.

(1.5pts)

True False

4)

There is no international governance of international financial markets because no substantial or quantifiable risk can be identified.

(1.5pts)

True False

5)

Exchange rates that a misaligned with a nation's economic fundamentals decreases the chance of a speculative attack succeeding in the derivatives markets in which the nation's currency denominated assets are heavily shorted.