_ 32. Suppose a country that fixes its exchange rate is running out of foreign reserves. If it wants to maintain a xed exchange rate system but cannot acquire additional inds or reverse the excess demand for the foreign currency, its only option is to a. revalue the domestic currency b. devalue the domestic currency c. switch to a gold exchange standard (1. dollarize e. peg its currency within a band _ 33. Money can act as a medium of exchange only if: a. it is scarce. b. it is convertible to other currencies. c. it does not depreciate. d. it has widespread acceptability. e. it is not volatile. _ 34. The process of buying and selling domestic currency for foreign currency is referred to as: a. indirect open market operation. b. indirect Forex intervention. c. direct Forex intervention. d. decit nancing. e. discounting. _ 35. Which of the following was the primary sunnbling block in the Uruguay Round and the current Doha Round of trade negotiations? at. insufficient commitments on agricultural liberalization b. Insufcient commitments on protection of intellectual property rights c. Excessive emphasis on protectionism to infant industries (1. Excessive emphasis on the imposition of quality control norms e. Restriction on the mobility of skilled workforce between nations _ 36. Which of the following properties is common to the European Union? a. This area was formed by four large countries of Eastern Europe. b. This area allows free trade in selected commodities between its member nations. c. This area allows for the mobility of workers but not other factors of production. d. The member nations have established a monetary union. e. The member nations have eliminated all barriers on agricultural trade