Under the Bretton Woods System (1946 - 1973) of fixed exchange rates:

1)

The US dollar was tied to a basket of currencies

2)

The Australian dollar was, for the most part, tied to an average of the currencies of our major trading partners

3)

The US dollar was fixed to gold and all central banks, except the US Federal Reserve Bank, defended their fixed exchange rate currencies through intervention in foreign exchange markets

4)

The currencies of all other countries floated against the US dollar.

5)

None of the given answers

The spread over LIBOR is a factor of:

1)

Market liquidity.

2)

The creditworthiness of the borrower.

3)

The maturity of the loan.

4)

All of the given answers.

5)

None of the given answers

The implications of the currency areas hypothesis of FDI is that:

1)

Firms from countries with strong currencies tend to invest abroad.

2)

Countries with strong currencies tend to be host countries.

3)

Countries with weak currencies tend to be sources of direct investment.

4)

The pattern of FDI is determined by the level of the real exchange rates, relative to the values implied by PPP.

5)

None of the given answers

The location hypothesis explains FDI in terms of:

1)

The rates of return on investment.

2)

Firm-specific advantages.

3)

The immobility of some factors of production.

4)

The desire to internalise some market transactions.

5)

None of the given answers