Please answer the following multiple choice questions:

1) The Basel Accords...

A.Establishes reserve requirements for the IBFs.

B.Provides supervision of the banks trading internationally.

C.Provides international deposit insurance.

D.Coordinates monetary policy among 11 countries.

2) International financial crises are generally caused by...

A. Volatile international capital flows into and out of countries.

B. Macroeconomic imbalances.

C. Either A or B.

D. None of the above. International financial crises are unpredictable, with no systematic origins.

3) The geographic distribution of the consequences of a financial crisis is called...

A. political redistribution of resources effect.

B. contagion effects.

C. externality effects.

D. economic redistribution of capital effect.

4) Which event is NOT usually associated with a financial crisis?

A. Currency convertibility crisis.

B. Banking crisis.

C. Debt crisis.

D. Exchange rate crisis.

5) Steps to cure a financial crisis resulting from sudden capital flight to avoid a recession are...

A. Sell reserves to support the currency.

B. Raise interest rates to strengthen the currency.

C. Both A and B.

D. None of the above.