According to Stiglitz, a global reserve currency is better than a multiple-currency system because a __________.
a. multiple-currency system is inherently unstable
b. global reserve currency reduces the role of politics in financial governance
c. multiple-currency system will eventually be dominated by a single currency
d. global reserve currency has no actual monetary value
Which of the following is an example of a situation in which defense dominated?
a. trench warfare in World War I
b. the use of tanks in World War II
c. allied perceptions of defense dominance in World War II
d. the occupation of Poland
Which of the following is an example of a situation in which offense dominated?
a. trench warfare in World War I
b. the French strategy in World War II
c. allied perceptions of defense dominance in World War II
d. the occupation of Poland
Why, according to Stiglitz, are SDRs inadequate as a global reserve currency?
a. SDRs are pegged to the US dollar.
b. Their exchange rates fluctuate too wildly.
c. Poorer countries have no access to them.
d. They are allocated based on a country's shares in the IMF.
According to Stiglitz, switching to a global reserve currency will reduce the value of the US dollar, but __________.
a. ultimately reduce US deficits
b. increase the value of the euro and RMB
c. also reduce the value of all other currencies
d. spur foreign investment in the US
Quick Reply
