IF Articles 24 February

--------------------- is a form of monetary policy in which a central bank, like the U.S. Federal Reserve, purchases securities from the open market to reduce interest rates and increase the money supply.

• Quantitative easing

• Quota easing

• Qualitative easing

• Quantum easing

--------------------------, also known as balance sheet normalization, is a type of monetary policy followed by central banks. It simply means that a central bank reduces the pace of reinvestment of proceeds from maturing government bonds, and is the exact opposite as the monetary stance of quantitative easing.

• Qualitative tightening

• Quantitative tightening

• Quantum tightening

• Quota tightening

One of the most important barometers for global currencies is the Dollar Index (DXY), which measures the value of the ------------- versus a basket of global currencies.

• SDR

• Euro

• USD

• GBP

During 2022 Federal Reserve raised rates higher and faster than other central banks. which made the dollar a good target for a “-----------------”: selling a low-yielding currency to buy a high-yielding one and pocketing the difference.

• swap

• future trade

• forward trade

• carry trade

A currency ------------ is a strategy whereby a high-yielding currency funds the trade with a low-yielding currency. A trader using this strategy attempts to capture the difference between the rates, which can often be substantial, depending on the amount of leverage used.

• carry trade

• forward trade

• future trade

• option

The greenback tends to do well both when America’s economy is motoring ahead and when it falls into a downturn, a phenomenon currency traders call the “---------------------”.

• dollar dichotomy

• dollar smile

• dollar irony

• dollar sarcasm

Shortly after the ------------Agreement was struck, speculators threw

currency markets back into chaos by forcing the dollar to devalue further, eventually breaking the Bretton Woods system altogether.

• Flexible Exchange Rate

• Bretton Woods

• Smithsonian

• Nixon

Economists judge how well countries fit in a currency union using criteria devised by -----------------, a Canadian economist, that measure economic similarities.

• Robert Ross

• Robert Mark

• Robert Henwell

• Robert Mundell

Brazil and Argentina will this week announce that they are starting preparatory work on a common currency, in a move which could eventually create the world’s second-largest currency bloc. The new currency is called as -------

• South

• sur

• sure

• secure

Since 2016 the boj has intervened in bond markets to keep the ten-year bond yield at around 0%, a policy known as “----------------------”.

• bond returns control

• yield-curve control

• interest rate control

• interest rate cap