Cashing out capital gains in Virtual Currency System 3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall.
b. M2 money supply to rise.
c. M2 money multiplier to remain the same.
d. M2 money supply to fall.
Question 2 - European corporations have been described with the term:
a. laissez faire
b. indirect capitalism
c. shareholder capitalism
d. managerial capitalism
e. all of the above
Question 3 - How can nations fix their exchange rates?
a. Either by imposing strict exchange controls or by setting interest rates at the same level as the country with which they want to fix the exchange rate.
b. Either by imposing strict exchange controls or by keeping inflation at the same rate as the country with which they want to fix the exchange rate.
c. Nominal exchange rates cannot be fixed.
d. Either by imposing strict exchange controls or by obligating the central bank to intervene in the foreign exchange market to keep the exchange rate at its chosen rate.
e. Either by keeping inflation at the same rate or by setting interest rates at the same level as the country with which they want to fix the exchange rate.
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