Economics

Which of the following is NOT usually given as a reason for an EU country joining the euro?

Which of the following is NOT usually given as a reason for an EU country joining the euro?

Which of the following is NOT usually given as a reason for an EU country joining the euro?

▸ Lower inflation

▸ Lower interest rates

▸ Elimination of exchange rate uncertainty

▸ Elimination of asymmetric shocks

unicorngirl13   26   1 Reply

Jacobian Smith

Which of the following is NOT usually given as a reason for an EU country joining the euro?

Which of the following is NOT usually given as a reason for an EU country joining the euro?

[html]Which of the following is NOT usually given as a reason for an EU country joining the euro?

▸ Increased scope for using interest rates to control the economy

▸ Increased inward investment

▸ Removal of exchange rate uncertainty when trading w

BenAff   39   1 Reply

javiermorilla

Which of the following is NOT an argument against a an EU country joining the euro?

Which of the following is NOT an argument against a an EU country joining the euro?

[html]Which of the following is NOT an argument against a an EU country joining the euro?

▸ There would be a loss of national independence.

▸ It would make fiscal policy ineffective.

▸ It would make dealing with asymmetric shocks more difficult.

shayeshaye00   51   1 Reply

meigsfla

Asymmetric shocks in the context of a currency union are when

Asymmetric shocks in the context of a currency union are when

[html]Asymmetric shocks in the context of a currency union are when

▸ all countries have the same problems.

▸ shocks have different effects in different areas, countries, etc.

▸ government departments have different goals.

▸ internal shocks are d

linhhh   25   1 Reply

Antoinette12

When countries achieve similar levels of growth, inflation and budget deficits this is called

When countries achieve similar levels of growth, inflation and budget deficits this is called

When countries achieve similar levels of growth, inflation and budget deficits this is called

▸ international harmonisation of economic policies.

▸ convergence.

▸ monetary convergence.

▸ globalisation.

Izzy122   44   1 Reply

Btllllll

The effect of changes in imports or exports of one country on the GDP of another country is called

The effect of changes in imports or exports of one country on the GDP of another country is called

The effect of changes in imports or exports of one country on the GDP of another country is called

▸ the international trade multiplier.

▸ trade contagion.

▸ globalisation.

▸ the trade transmission system.

uni67   22   1 Reply

Niquegirl21!

The term 'beggar-my-neighbour policies' is usually applied to

The term 'beggar-my-neighbour policies' is usually applied to

[html]The term 'beggar-my-neighbour policies' is usually applied to

▸ the IMF imposing harsh conditions when granting loans to poor countries.

▸ countries trying to solve their problems without considering the international effects.

▸ Eurosceptici

parneetgill   14   1 Reply

jesika1122

When countries diverge, then their exchange rates tend to change. Which of the following divergences ...

When countries diverge, then their exchange rates tend to change. Which of the following divergences ...

When countries diverge, then their exchange rates tend to change. Which of the following divergences will NOT quickly lead to changes in exchange rates?

▸ Growth rates

▸ Inflation rates

▸ Interest rates

▸ Unemployment rates

malabranche13   19   1 Reply

n00835996

Short-term movements of finance around the world can be controlled in a variety of ways. Which of ...

Short-term movements of finance around the world can be controlled in a variety of ways. Which of ...

[html]Short-term movements of finance around the world can be controlled in a variety of ways. Which of the following has NOT been suggested as one of them?

▸ Limits on the proportion of assets that can be traded in any one day/week/whatever

▸ Havi

Tneary   19   1 Reply

emr21

Economists use the term 'globalisation' to mean that

Economists use the term 'globalisation' to mean that

Economists use the term 'globalisation' to mean that

▸ trade is growing faster than GDP.

▸ countries are more vulnerable to changes in the rest of the world.

▸ former communist countries have become capitalist.

▸ A and B

shaerovira   25   1 Reply

johnsyke

Which of the following is/are drivers of globalisation?

Which of the following is/are drivers of globalisation?

Which of the following is/are drivers of globalisation?

▸ Restrictions on trade being removed

▸ A growth in international financial flows

▸ Trade growing faster than GDP

▸ All of the above

justinw2200   26   1 Reply

Isack

The record of a country's transactions in goods, services, and assets with the rest of the world is ...

The record of a country's transactions in goods, services, and assets with the rest of the world is ...

The record of a country's transactions in goods, services, and assets with the rest of the world is its balance of trade.

▸ true

▸ false

lmalma   47   1 Reply

Omama

When the UK acquires assets abroad, it is in essence borrowing money, and foreign debts to the UK decrease.

When the UK acquires assets abroad, it is in essence borrowing money, and foreign debts to the UK decrease.

When the UK acquires assets abroad, it is in essence borrowing money, and foreign debts to the UK decrease.

▸ true

▸ false

baileymeredith   35   1 Reply

Bakari

The UK balance of payments is made up of just two main accounts: the current account and the capital account.

The UK balance of payments is made up of just two main accounts: the current account and the capital account.

The UK balance of payments is made up of just two main accounts: the current account and the capital account.

▸ true

▸ false

dskmvld   55   1 Reply

jrhome1985!

The UK has been a net exporter of services for most of the past 100 years.

The UK has been a net exporter of services for most of the past 100 years.

The UK has been a net exporter of services for most of the past 100 years.

▸ true

▸ false

michlee   18   1 Reply

urbacore

A country has the following items in its balance of payments: millionsExports of goods120Imports of ...

A country has the following items in its balance of payments: millionsExports of goods120Imports of ...

[html]A country has the following items in its balance of payments:

zar   43   7 Replies

cuddahy99

An excess supply of pounds will cause an appreciation of the pound.

An excess supply of pounds will cause an appreciation of the pound.

An excess supply of pounds will cause an appreciation of the pound.

▸ true

▸ false

Hernando G.   33   1 Reply

n00835996

The following diagram shows the demand for sterling by holders of dollars (e.g. to buy UK imports) ...

The following diagram shows the demand for sterling by holders of dollars (e.g. to buy UK imports) ...

[html]The following diagram shows the demand for sterling by holders of dollars (e.g. to buy UK imports) and the supply of sterling to purchase dollars (e.g. to buy US exports). The sterling demand and supply curves are currently

lizsmith   78   11 Replies

tlaster

If a country's net imports of goods are not balanced by similar net exports of services, then, ...

If a country's net imports of goods are not balanced by similar net exports of services, then, ...

If a country's net imports of goods are not balanced by similar net exports of services, then, under a floating exchange rate, the exchange rate will change.

▸ true

▸ false

Kaevyn04   21   1 Reply

binva

The sterling exchange rate index is a weighted average of the exchange rates of the pound sterling ...

The sterling exchange rate index is a weighted average of the exchange rates of the pound sterling ...

The sterling exchange rate index is a weighted average of the exchange rates of the pound sterling with a variety of other currencies.

▸ true

▸ false

wildcat290   33   1 Reply

samah952

The following diagram shows sterling exchange rates (it is similar to Figure 13.2 in the ...

The following diagram shows sterling exchange rates (it is similar to Figure 13.2 in the ...

[html]The following diagram shows sterling exchange rates (it is similar to Figure 13.2 in the text).

studymite   62   1 Reply

Omama

An exchange rate regime is the way in which the government lets the exchange rate be decided.

An exchange rate regime is the way in which the government lets the exchange rate be decided.

An exchange rate regime is the way in which the government lets the exchange rate be decided.

▸ true

▸ false

seeb1999   47   1 Reply

Lori734

One advantage of a fixed exchange rate is that it prevents speculation.

One advantage of a fixed exchange rate is that it prevents speculation.

One advantage of a fixed exchange rate is that it prevents speculation.

▸ true

▸ false

achalmers   31   1 Reply

Nikki_LYNN

Exchange rate movements will reinforce monetary policy but will dampen fiscal policy.

Exchange rate movements will reinforce monetary policy but will dampen fiscal policy.

Exchange rate movements will reinforce monetary policy but will dampen fiscal policy.

▸ true

▸ false

Ilovebacon22   46   1 Reply

Jacobian Smith

If there were a 50% chance that by this time next week a currency will have depreciated by 20%, then ...

If there were a 50% chance that by this time next week a currency will have depreciated by 20%, then ...

If there were a 50% chance that by this time next week a currency will have depreciated by 20%, then selling the currency now will give an expected return of approximately 10% for the week.

▸ true

▸ false

mrive3127   28   1 Reply

Jacobian Smith

'Sovereign risk' refers to the risk that a government's or central bank's policies will make ...

'Sovereign risk' refers to the risk that a government's or central bank's policies will make ...

'Sovereign risk' refers to the risk that a government's or central bank's policies will make that country less favourable to companies doing business there.

▸ true

▸ false

jaspinder kaur   32   1 Reply

purplepanda1516

The larger the level of international financial flows, the more will interest-rate changes in one ...

The larger the level of international financial flows, the more will interest-rate changes in one ...

The larger the level of international financial flows, the more will interest-rate changes in one country affect the economies of other countries.

▸ true

▸ false

emyleepatton   25   1 Reply

Matt. DeSouza

The availability of currencies which are commonly used for world trade and investment is called ...

The availability of currencies which are commonly used for world trade and investment is called ...

The availability of currencies which are commonly used for world trade and investment is called international liquidity.

▸ true

▸ false

anthonydel117   36   1 Reply

jesika1122

One of the criteria for countries joining the euro is that unemployment should be close to the ...

One of the criteria for countries joining the euro is that unemployment should be close to the ...

One of the criteria for countries joining the euro is that unemployment should be close to the eurozone average.

▸ true

▸ false

barry1999   23   1 Reply

binva

If two countries have fixed their exchange rates then they must have the similar fiscal policies.

If two countries have fixed their exchange rates then they must have the similar fiscal policies.

If two countries have fixed their exchange rates then they must have the similar fiscal policies.

▸ true

▸ false

Kaevyn04   21   1 Reply

amw87470

If two countries have fixed their exchange rates then they must have the similar monetary policies.

If two countries have fixed their exchange rates then they must have the similar monetary policies.

If two countries have fixed their exchange rates then they must have the similar monetary policies.

▸ true

▸ false

unicorngirl13   27   1 Reply

jzhu11

Differences in growth rates between countries can cause changes in exchange rates.

Differences in growth rates between countries can cause changes in exchange rates.

Differences in growth rates between countries can cause changes in exchange rates.

▸ true

▸ false

Biraj   51   1 Reply

bli14

Exchange rates will be less variable if countries' economies manage to converge.

Exchange rates will be less variable if countries' economies manage to converge.

Exchange rates will be less variable if countries' economies manage to converge.

▸ true

▸ false

jaspinder kaur   36   1 Reply

jenniferagrethe

One type of control of speculative international financial flows is known as a 'Tobin tax'. This ...

One type of control of speculative international financial flows is known as a 'Tobin tax'. This ...

One type of control of speculative international financial flows is known as a 'Tobin tax'. This is a small tax on foreign exchange transactions.

▸ true

▸ false

asjstr   27   1 Reply

Isack

Define the current account of the balance of payments.

Define the current account of the balance of payments.

Define the current account of the balance of payments.

jujubee600   29   1 Reply

jeromet1

Assume that there is a balance of payments deficit caused by a high rate of domestic inflation. ...

Assume that there is a balance of payments deficit caused by a high rate of domestic inflation. ...

[html]Assume that there is a balance of payments deficit caused by a high rate of domestic inflation. (Choose correct answer in each case.)
a) What effect will a deflationary monetary policy (a reduction in money supply) have on interest rates?

msouthern   56   1 Reply

RNIPP

Identify whether each of the following would lead to an appreciation or depreciation of the pound. ...

Identify whether each of the following would lead to an appreciation or depreciation of the pound. ...

[html]Identify whether each of the following would lead to an appreciation or depreciation of the pound. In each case, explain why the currency either appreciates or depreciates.
a) UK citizens switch from buying stock in US companies to buying

gcd99br   73   1 Reply

beunikuel

Assume that under a floating exchange rate system the government pursues a contractionary policy. ...

Assume that under a floating exchange rate system the government pursues a contractionary policy. ...

[html]Assume that under a floating exchange rate system the government pursues a contractionary policy. (Choose correct word in each case.)
a) What will happen to the exchange rate if it uses contractionary monetary policy?

temp321   19   1 Reply

jrhome1985!

Under adjustable peg regimes governments were sometimes reluctant to devalue, even when a deficit ...

Under adjustable peg regimes governments were sometimes reluctant to devalue, even when a deficit ...

Under adjustable peg regimes governments were sometimes reluctant to devalue, even when a deficit was fundamental, why?

baileymeredith   16   1 Reply

jrhome1985!

Give two advantages of fixed exchange rates.

Give two advantages of fixed exchange rates.

Give two advantages of fixed exchange rates.

shayeshaye00   10   1 Reply

eltoro