1) Explain what the World Bank and IMF are and the purposes of both.

2) What is a fixed exchange rate and a floating exchange rate?

3) If the US Federal Reserve increases the money supply, what will be the value and exchange rate of the US dollar?

4) What will be the value of the US dollar if the US government increases the deficit and Federal Debt?

5) When did the US exit the Gold Standard?

6) Explains the trilemma.

7) Suppose a fixed exchange rate is overvalued, why would the central bank defend the currency?

8) What is the difference between spot and forward exchange rate?

9) What is the current value of Euro and Yen exchange rates?

10) If the euro depreciates against the dollar, are American goods more expensive or less? From where?

Answer rating: 100% (QA)

1 The World Bank and the International Monetary Fund IMF are international organizations established ... View the full answer