[Solved] Assignment 219366


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Subject: Business    / FinanceQuestion 1 (1 point)Which of the following is not part of the trilemma of international monetary regimes?Question 1 options:free tradefree capital flowseffective monetary policyfixed exchange rateSaveQuestion 2 (1 point)People holding money in anticipation that bond yields will rise is an example ofQuestion 2 options:money demand for transactions.precautionary demand.speculative demand.none of the above.SaveQuestion 3 (1 point)People holding money in case they need to fix their car is an example ofQuestion 3 options:money demand for transactions.precautionary demand.speculative demand.none of the above.SaveQuestion 4 (1 point)Which of the following regimes allows for effective domestic monetary policy?Question 4 options:gold standardfree floatfixed exchange ratenone of the aboveSaveQuestion 5 (1 point)Dollarization is a type of what exchange rate regime?Question 5 options:dirty standardfree floatfixed exchange ratenone of the aboveSaveQuestion 6 (1 point)Which of the following is equivalent to velocity?Question 6 options:MV/PYYP/MMP/Ynone of the aboveSaveQuestion 7 (1 point)The major advantage of fixed exchange rates is that _____.Question 7 options:is allows for free capital mobilityit ensures exchange rate stability for importers and exporterscentral banks can exercise monetary policy discretionit increases the foreign exchange reserves with the central bankSaveQuestion 8 (1 point)One determinant of money demand that Friedman considers but Keynes does not isQuestion 8 options:output.the return on stocks.the unemployment rate.none of the above.SaveQuestion 9 (1 point)The primary disadvantage of the gold standard is thatQuestion 9 options:international capital flows are restricted.the supply of gold has little connection to economic conditions.exchange rates are volatile.none of the above.SaveQuestion 10 (1 point)According to Friedman, an increase in expected inflation causes the demand for money to _____, ceteris paribus.Question 10 options:increasedecreasestay the samecannot be determinedUnder a dirty float, a country must sell international reserves when its exchange rate (in terms of a foreign currency) reaches itsQuestion 11 options:maximum.minimum.both of the above.neither of the above.SaveQuestion 12 (1 point)In Keynes’s model, a(n) _____ in interest rates can decrease the _____ demand for money.Question 12 options:increase, transactionsdecrease, transactionsincrease, speculativedecrease, speculativeSaveQuestion 13 (1 point)Some developing countries adopted a managed float instead of a free float becauseQuestion 13 options:a managed float does not require that they hold foreign reserves.exchange rates are less volatile under a managed float.there are restrictions on capital mobility under a free float.none of the above.SaveQuestion 14 (1 point)If a central bank does not have full control of the supply of money, supply is ____ on a graph of the supply and demand for money.Question 14 options:upward slopingdownward slopingverticalhorizontalSaveQuestion 15 (1 point)A country that commits to a maximum and minimum allowable exchange rate at a given time uses aQuestion 15 options:dirty float.managed fixed exchange rate.specie standard.all of the above.SaveQuestion 16 (1 point)Which of the following is a difference between Keynes liquidity preference theory and the modern quantity theory of money?Question 16 options:The modern quantity theory of money specifies 1 asset instead of 3 assets like the liquidity preference theory.The liquidity preference theory assumes the return on money to be 1, unlike the modern quantity theory of money.The liquidity preference theory assumes velocity to be constant, unlike the modern quantity theory of money.The modern quantity theory predicts that interest rate changes have little effect on money demand unlike the liquidity preference theory.SaveQuestion 17 (1 point)A sterilized purchase of international reserves by a central bank is meant to make its currencyQuestion 17 options:appreciate.depreciate.offset the purcahse or sale of international reserves with a domestic sale or purchaseit is unsure if it will appreciate or depreciate a currencySaveQuestion 18 (1 point)Which of the following could explain an increase in velocity?Question 18 options:credit cardswire transferscash management accountsall of the aboveSaveQuestion 19 (1 point)what was one of the assumptions to the quantity theory of money that proved to be problematic?Question 19 options:the money supply stays constantforeign exchange rates don’t matter as they are fixed due to the gold standardmoney velocity is constantit uses real GDP rather than nominal GDP in its identitySaveQuestion 20 (1 point)An unsterilized sale of international reserves by a central bank is meant to make its currencyQuestion 20 options:appreciate.depreciate.neither appreciate nor depreciate.cannot be determined.

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