1、 Questions and problems for Chapter 3: 1. What is an exchange-rate system?2. How does a gold standard constitute an exchange-rate system?463. What was the Bretton Woods system of “pegged“ exchange rates?494. What post-Bretton Woods system of “flexible“ exchange rates prevails today?545. What are cra
2、wling-peg and basket-peg exchange-rate arrangements?566. What is a currency board, and what is dollarization?577. Which is best: a fixed- or flexible-exchange-rate arrangement?59 Multiple Choice Questions1. The principle function （主要职能）of the International Monetary Fund was originally to A. lend to
3、member nations（成员国） experiencing a shortage of foreign exchange reserves（储备）.B. finance postwar （战后）reconstruction （重建）, particularly in Europe and Japan. C. reduce trade barriers and settle disputes among countries relating to currency negotiations.D. act as a supranational regulatory agency for do
4、mestic central banks.Answer: A2. The U.S. dollar today is an example of a A. commodity money.B. fiat money.不兑换纸币，名义纸币C. commodity-backed money.D. currency basket.Answer: B3. The gold standard was in place for most major economics of the world during the periodA. from the beginning of the Great Depre
5、ssion until World War II.B. from 1973 until the present.C. from the mid-1870s until World War I.D. since the end of World War II.Answer: C4. Under the gold standard, if the mint parity（铸币局） condition for the French franc was set at Ffr107.1 per ounce of gold, and the German mark was set at DM88.7 pe
6、r ounce of gold, then it is possible to compute（计算） the exchange rate between the German mark and the French franc (DM/f) as approximately（大约）A. 0.83.B. 1.21.C. 9490.9D. It is not possible to compute the exchange rate between the mark and the franc with these values, because these values are relativ
7、e to the price of gold.Answer: A5. Under the Bretton Woods system, most of the major currencies of the system, other than the U.S. dollar, A. pegged their values against the value of an ounce of gold.B. pegged their values against the value of the dollar. C. allowed their currencies to float.D. pegg
8、ed their values against the value of the Euro.Answer: B6. Which of the following is not an institution that arose under the Bretton Woods Agreement?A. The International Monetary Fund.B. The International Bank for Reconstruction and Development. 世界银行C. The League of Nations.D. The General Agreement o
9、n Tariffs and Trade.关贸总协定Answer: C7. In the Plaza Agreement（广场） of September, 1985, the “Group of Five“ or “G5“ countries announced that they believed thatA. the “G5“ needed to be expanded to include an additional five major industrialized countries to make up what is now referred to as the “G10“.B.
10、 the Bretton Woods system would no longer be sustainable.C. it was necessary to “float“ the dollar relative to gold.D. the exchange value of the dollar was too strong and that they would coordinate their central bank interventions in order to drive down the value of the dollar.Answer: D8. Which of t
11、he following is not a member of the “Group of Ten“ industrialized countries?（G10：西德 法国 日本 英国 美国 意大利 加拿大 比利时 荷兰 瑞典）A. JapanB. BelgiumC. Switzerland 瑞士D. SwedenAnswer: C9. An example of a country that maintained a crawling-peg exchange-rate system（爬行钉住汇率） during the early 2000s is A. the United States
12、.B. Canada.C. France.D. Nicaragua.尼加拉瓜Answer: D10. A currency board is anA. exchange market in which the major currencies of the world are exchanged on the open market among private banks at prevailing rates（现行汇率）.B. independent monetary agency that substitutes for a central bank by pegging the grow
13、th of the domestic money stock to the foreign-exchange holdings of the board.C. independent monetary agency which is responsible for setting bank reserve requirements for the domestic currency.D. exchange market in which the notes and bills issued by the domestic government are traded on the open ma
14、rket among private banks.Answer: B11.Which of the following arrangements places the greatest restriction on policymakers and requires the greatest sacrifice of policy autonomy（自治权）?A. a free float.B. a currency-basket peg.C. dollarization.D. a currency board.Answer: C12.If the Chinese renminbi, whos
15、e unit of currency is the yuan, is revalued （估价）relative to the U.S. dollar, thenA. for each yuan, one can expect to buy fewer dollars.B. for each yuan, one can expect to buy more dollars.C. the exchange rate between the renminbi and the dollar will remain constant.D. it is impossible to tell what w
16、ill happen to the exchange rate or the number of dollars that one can buy with each yuan, since this depends on the supply and the demand for the yuan relative to the dollar.Answer: D13. Currency basket pegs usually involve pegging the domestic currency to A. each of the major currencies of the worl
17、d.B. the relative price of a chosen basket of consumer goods.C. a weighted average （加权平均）of only a small selected number of different currencies.D. within an upper and lower limit of a band relative to either the U.S. dollar or the Japanese yen.Answer: C14. A “dirty float“ exchange rate system (合理行动
18、汇率制)refers to A. an exchange rate system wherein policymakers allows the value of the domestic currency to be determine only by the forces of supply and demand.B. an exchange rate system whereby each of the members of the system peg their currency against one of the major currencies, such as the U.S
19、. dollar, which is in turn pegged against a commodity, such as gold.C. an exchange rate arrangement in which the domestic currency is primarily managed by the central bank of a foreign country, which is typically the major trading partner.D. an exchange rate arrangement in which a nation allows the
20、international value of its currency to be primarily determined by market forces, but intervenes（介入） occasionally to stabilize （稳定）its currency.Answer: D15. The G7/G8 economic summits were started by:A. Russian President Bois YeltsinB. U.S. President Gerald FordC. U.S President William Clinton.D. Fre
21、nch President Valery Giscard dEstaing.Answer: D16. The Smithsonian agreement（史密森协议） refers to A. the understanding that most of the major industrialized countries came to at the end of the depression era regarding the non-sustainability of the gold standard as it was currently practiced.B. an agreem
22、ent that was made to establish new par values for the G10 countries that had participated in the Bretton Woods system.C. the agreement that President Nixon came to vis a vis the other G10 members to suspend temporarily the convertibility of the dollar into gold or other reserve assets.D. the initial
23、 agreement that set forth future economic cooperation under the North American Free Trade Association.Answer: B17.Which of the following did not contribute to the eventual collapse of the Bretton Woods system?A. Increased federal（联邦制） spending for social programs termed the “Great Society“ under the
24、 Johnson administration.B. Heightened U.S. involvement in Vietnam.C. The conditions set forth in the Louvre Accord.（卢浮宫协议）D. U.S. balance of payments deficits with Germany and Japan.Answer: C18. A Monetary Order（货币秩序） isA. a set of rules that determine the international value of a currency.B. a set
25、of laws and regulations that establishes the framework（框架） within which individuals conduct and settle transactions.C. an exchange rate arrangement in which a country pegs the international value of the domestic currency relative to the currency of another nation.D. a specialized form of a currency
26、board.Answer: B19.Which of the following is an example of a commodity money that has been used extensively（被广泛使用）?A. Credit cards.B. Demand deposits and certificates of deposit.C. Gold.D. The Euro.Answer: C20.A key challenge to the exchange rate system of the leading industrialized countries in the
27、1970s came as a consequence of A. a rapid increase in the price of petroleum 石油.B. the formation of the Bundesbank.C. the heightening of Cold War tensions.D. the establishment of many currency baskets worldwide.Answer: A21.The IMF constitution（章程） was amended（修订） to allow member nations to determine
28、 their own exchange rate arrangements under the A. Smoot-Hawley Act.B. Jamaica Accord.（牙买加协议）C. Smithsonian Agreement.D. Treaty of Rome.Answer: B22. An advantage of the gold standard system was that A. it promoted conditions that helped to avoid periodic（周期的）financial and banking instability（不稳定的）.B
29、. it did not require countries to have central banks.C. it ensured short-run stability of the monetary stock.D. minting and transportation costs were relatively low as compared to other exchange rate systems.Answer: B23.The gold window for the U.S. dollar was closed byA. President Ronald Reagan.B. P
30、resident James Carter.C. Federal Reserve Chairman Paul Volker.D. President Richard Nixon.理查尼克松Answer: D24. An advantage of a flexible exchange rate system is that itA. can help a country overcome external shocks such as an unusual inflow of capital from abroad.B. can reduce the volatility of nominal
31、 exchange rate over time.C. eliminates the need for the central bank to target interest rates.D. ensures a greater volume of trade in goods and services among member countries.Answer: A25.Which of the following is a principal function of the International Monetary Fund?A. To act as a forum for inter
32、national monetary cooperation.B. To provide central banks with a range of financial services for managing their external reserves.C. To act as a lender of last resort for countries facing temporary external balance of payments problems.D. To act as an agent or trustee which facilitates the implementation of various international financial agreements.Answer: C
