QUESTION 8

"An exchange rate policy in which the government usually allows the market to set the exchange rate, but in some cases, especially if the exchange rate seems to be moving rapidly in one direction, the central bank will intervene" is called:

Hard peg

Soft peg

Tobin tax

Dollarization

0.75 points

QUESTION 9

Merged currency happens when a nation chooses to use another nation's currency. Which one of the following options is an example of a merged currency?

Dollarize

Floating exchange market

Hedge

Arbitrage

0.75 points

QUESTION 10

If a Canadian investor buys and sells international stocks and bonds to make a profit during the time is an example of which option?

portfolio investment

Hedging

foreign direct investment (FDI)

Arbitrage

0.75 points

QUESTION 11

Purchasing more than ten percent of a firm or starting a new enterprise in another country is called?

international capital flows

Indirect investment

portfolio investment

foreign direct investment (FDI)

0.75 points

QUESTION 12

What is a Tobin tax?

Taxes on international imports and exports to control the exchange rate fluctuations are known as Tobin taxes

Taxes on imports to control the trade balance deficit are known as Tobin taxes

Taxes on international capital flows to control the exchange rate fluctuations are known as Tobin taxes

Taxes on international commodity flows to control the trade balance deficit are known as Tobin taxes

0.75 points

QUESTION 13

The group of countries which maintained high growth rates and rapid export-led industrialization between the early 1960s and 1990 are called "East Asian Tigers". These countries are listed in which option?

China, Taiwan, Singapour, and Hong Kong

Taiwan, Singapore, Japan, and South Korea

Taiwan, Singapore, Hong Kong, and South Korea

Taiwan, Singapore, Hong Kong, and China

0.75 points

QUESTION 14

A high-income country is a nation with a per capita income of .... or more; typically has high levels of human and physical capital

$22,700

$12,475

$52,400

$11,025

0.75 points

QUESTION 15

low-income countries are the group of nations that have a per capita income of less than $1,025. What percentage of the world population are living in these countries?

33%

55%

44%

66%