1.The balance of payments refers to the money that citizens pay to their governments every year.

2.Due to globalization, it is no longer necessary to exchange one currency for another when a US citizen wants to buy goods from any other countries in the world.

3.Monetary policy is the management of money supply and interest rates within a country.

4.One thing Central Banks try to do is keep the inflation rate from getting too high.

5.A floating exchange rate system is when the value of the country's currency is determined by the government, which pegs its currency to an anchor currency.

6.A fixed exchange rate system is when the value of a country's currency is determined by the supply and demand for that currency in the market.

7.The Gold Standard was a fixed exchange rate system that lasted from about 1863-1944.

8.The Bretton Woods Monetary System lasted from 1945 to 1973 and consisted of these rules: exchange rates fixed to the dollar, no restrictions on currency exchange, the use of the International Monetary Fund to bail out countries suffering from foreign exchange reserve problems.

ALL ARE TRUE OR FALSE