A reform introduced under Deng:
a. the Shanghai experiment
b. the Great Leap
c. the Cultural Revolution
d. the Tang Reform
e. free trade zones
Question 2 - Assume a country experiences heavy capital outflows. What is the first round effect on the value of the domestic currency?
a. The value of the currency rises.
b. The value of the currency is unaffected.
c. The value of the currency falls.
d. The change in the value of the currency is ambiguous.
Question 3 - Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world.
b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender.
c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand.
d. In terms of their potential to change a nation's monetary base, there is no difference because neither VCU3 nor VCU2 affect a nation's monetary base.
Question 4 - Corporate ownership in Asia is characterized by:
a. strong minority shareholder rights
b. widely held ownership
c. IPOs
d. Hostile takeovers
e. family ownership
Question 5 - Assume a country experiences heavy capital outflows. What is the first round effect on the real risk-free interest rate?
a. The change in the real risk-free interest rate is ambiguous.
b. The real risk-free interest rate rises.
c. The real risk-free interest rate falls.
d. The real risk-free interest rate is unaffected.
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