The major source of investment finance in the European model is
a. The stock market
b. Foreign investment
c. Reinvested profits
d. Bank loans
e. All of the above
Question 2 - Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions rises.
b. Real GDP rises, and current international transactions remain the same.
c. Real GDP rises, and current international transactions become more negative (or less positive).
d. Real GDP rises, and current international transactions become more positive (or less negative).
e. Real GDP falls, and current international transactions become more negative (or less positive).
Question 3 - One of the potential social benefits of the Bitcoin is:
a. It can be used instead of a domestic currency in times of financial stress and exchange rate controls.
b. It can free individuals from harmful monopoly currencies.
c. It can be programmed to increase at a rate that guards against over-issuance.
d. All of the above are true.
Question 4 - In the European model the stakeholder plays a less prominent role than in the Anglo-Saxon model
a. True
b. False
Question 5 - Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP rises, and nominal value of the domestic currency falls.
b. Real GDP rises, and nominal value of the domestic currency rises.
c. Real GDP falls, and nominal value of the domestic currency remains the same.
d. Real GDP falls, and nominal value of the domestic currency falls.
e. Real GDP falls, and nominal value of the domestic currency rises.
Question 6 - The Bitcoin:
a. Is an example of VCU1.
b. Is an example of VCU2.
c. Is an example of VCU3.
d. Is an example of VCU4.
e. None of the above because the Bitcoin is not a virtual currency.
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