these question quick!! Question 1 A floating exchange rate regime means that the exchange rate is? A. Fixed to a specific basket of foreign currencies. B. Mainly market determined via supply and demand for foreign currency and the central bank is never allowed to intervene. C. Fixed to a specific foreign currency but not others. D. Mainly market determined via supply and demand for foreign currency and the central bank can potentially intervene to achieve short-term policy goals. Question 2 The following explanations can be seen as advantages of a fixed exchange rate regime EXCEPT FOR A. Prices of imported goods are more stable in domestic currency. B. Importers and exporters are no longer subject to foreign exchange market volatility C. The country no longer has the ability to set monetary policy according to other domestic considerations. D. The country signals a credible commitment to low inflation. Question 3 Regarding trade, all of the following statements are generally considered correct EXCEPT FOR? A. There are winners and losers with free trade. B. The World Trade Organization (WTO) provides the structure for the global trading system. C. Tariffs on imports are excellent trade instruments because they impose a transfer of revenues from the treasury of the exporter country to the importer country, making the latter richer. D. Free trade is a net gain to society. Question 4 On 12/30/1998 IBOVESPA (the Brazilian main stock index) closed the year at 6784. Two and a half months later on 3/18/1999, the IBOVESPA was at 10894, over 60% growth. The explanation for such a change in such a short period may rest on the exchange rate market. Select the most likely explanation for this change from the list below (only one). A. A massive depreciation of the Brazilian currency made traded Brazilian firms cheaper to buy for foreign investors, increasing short-term portfolio flows into the country. B. A massive appreciation of the Brazilian currency prompted foreign investors to increase their trust in the economic policy thereby increasing the demand for traded Brazilian firms. C. A massive appreciation of the Brazilian currency prompted foreign importers to increase their demand for Brazilian goods, which in turn increased the demand for traded Brazilian exporting firms in the local stock market. D. A massive depreciation of the Brazilian currency made foreign direct investment increase and new IPOs (initial public offerings) explain the growth in the stock market