IF Quiz 1

The multinational monetary system can be defined as an international framework within which international ----------- are made, the movemnets of ------ are accommodated and ------------ among currencies are determined.

• payments, capital, exchange rates

• transactions, funds, relationships

• capital, transactions, exchange rates

• payments, funds, relationships

The international monetary system went through ----------- stages of evolution

• four

• five

• six

• three

The first and foremost among the stages of international monetary system is ---------------

• Classical Gold Standandard

• Interwar Period

• Bimetallism

• Bretton Woods System

Under the Gold Standard the exchange rate between two currencies is determined by the ----------- contents of the currencies

• metal

• foreign currency

• SDR

• gold

Balance of Payment disequilibrium is automatically corrected through the price-specie-flow mechanism under the -------------

• Gold Standard

• Bimetallism

• Bretton Woods System

• Fixed Exchange Rate System

The flexible exchange rate system replaced the ------------- was ratified by the Jamaican Agreement.

• Bimetallism

• Bretton Woods System

• Interwar Period

• Gold Standard

The EEC launched European Monetary System in 1979 to establish a 'zone of -----------' in Europe.

• uniform currency

• common currency

• monetary stability

• monetary equity

The two main instruments of the European Monetary System are the European Currency Unit and European ------------.

• Monetary Policy

• Capital Policy

• Monetary Mechanism

• Exchange Rate Mechanism

The common European currency Euro was launched in ----------- and -------- countries adopted it on its launch

• 1999, 11

• 1999, 19

• 2000, 11

• 2000,19

The benefit of Euro for the European countries are reduced ----------- and elimination of -----------.

• forex reserves, export import duty

• transaction costs, exchange rate uncertainty

• export import duty, forex reserves

• exchange rate uncertainty, transaction costs