One possible source of the first Eurocurrency account was a result of the
A) Cold War.
B) Second World War.
C) Oil Crisis in the 1970s.
D) the Erie Canal.
Question 2 - Crops produced entirely for the market are known as
(a) basic crops.
(b) mixed crops.
(c) hybrid crops.
(d) cash crops.
Question 3 - If the current account is a deficit of 25 then
(a) the capital account is a surplus of 25.
(b) the cash account is a surplus of 25.
(c) the capital account is a surplus of 25 if the cash account is zero.
(d) the cash account is a deficit of 25
Question 4 - The growth of the Euromarkets resulted in
a. developing-country governments borrowing from European banks instead of American and Japanesebanks
b. higher interest rates in Europe than in the U.S. and Japan
c. a general trend toward substituting foreign aid for bank lending
d. a general trend toward substituting bank lending for foreign aid
e. none of the above
Question 5 - One major advantage to a fixed exchange rate system is
A) that exchange rate volatility is eliminated.
B) that hedging strategies can be implemented.
C) that fixed exchange rate nations seldom have credit risk problems.
D) that systemic risk is eliminated.
Question 6 - What role should the government play with respect to the agricultural sector in developing countries in their attempt to alleviate poverty?
What will be an ideal response?
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