1 A(n) ________ is defined as when a country makes small periodic changes in the value of its currency with the intention of moving it to a particular value over time.

Managed Float

Crawling Peg

Exchange Rate

Floating Exchange Rate

2 Soft currency examples include all of the following except _______.

North Korean Won

Cuban Peso

Zimbabwe Dollar

Japanese Yen

3 If the exchange rate of the pound sterling to the U.S. dollar is 2 to $1, but then the exchange rate moves to 3 to $1, what has transpired?

Less U.S. dollars can be purchased by using the same amount of pound sterling

U.S. dollar has appreciated by 50% relative to the pound sterling

Pound sterling has appreciated by 50% relative to the U.S. dollar

Pound sterling has depreciated by 50% relative to the U.S. dollar

4 The current international monetary system can best be described as _______.

Gold Standard

Perfect floating rate system

Perfect managed rate system

An eclectic combination of different exchange rate systems

5 Special drawing rights are calculated based on a basket of all of the following currencies except _______.

Chinese Yuan

US Dollar

British Pound

Japanese Yen