1. Outline the political, economic, institutional,

and procedural features of the gold standard, the

fixed-exchange-rate, and the flexible-exchangerate systems. What are some of the political and

economic advantages and disadvantages of each

system?

2. Outline the institutional features of the IMF and

its role in settling current account deficits.

3. If the U.S. dollar depreciates dramatically relative

to the Chinese yuan, what effect would this likely

have on consumers and businesses in each country? When is a falling dollar good or bad for the

United States? Explain.

4. How have globalization and economic liberal

ideas shaped developments in the monetary and

finance structure? Cite specific examples from the

chapter and in news articles.

5. The United States has experienced huge current

account deficits that have made it dependent on

investments from other states. What specific political and economic factors contributed to this condition? Who has the United States relied on the

most to invest in the United States? Is it rational

for these countries to invest in the United States?

What impact does this situation have on the value

of the U.S. dollar?