The roots of the European Union are in agreements within the coal and steel industries
Indicate whether the statement is true or false
TRUE
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Which of the following was NOT one of the causes of the Asian financial crises of 1997 and 1998?
A) A current account deficit and financial account surpluses B) The use of exports as an engine of economic growth by the countries involved C) China's 1994 devaluation of its fixed exchange rate D) The appreciation of the U.S. dollar and depreciation of the Japanese yen E) Crony capitalism
Suppose the government of a country starts a system designed to ensure that depositors in a bank do not lose their money, even if the bank goes bankrupt. Banks will have to pay a premium to a Central Deposit Assurance Corp, ensuring that depositors do not lose their deposits. Which of the following is likely to be true in such a situation? a. Safer banks, with a higher net worth, would pay a
lower premium, while riskier banks, with a lower net worth, would pay a higher premium. b. Banks with a high net worth would pay a high premium, while banks with a low net worth would pay a low premium. c. The incidence of bank runs would increase. d. The willingness of banks to make loans would decrease.
Figure 5-4
In Figure 5-4, the rightward shift in budget lines from the one containing point A to the one containing point B
a.
resulted from equal price reductions in beer and wine.
b.
resulted from an increase in the consumer's income.
c.
could have been caused by income or price changes.
d.
All of the answers above are correct possibilities.
e.
None of the above is correct.
Generally, exchange rates are quoted as a single price of a unit of foreign currency rather than a ratio because:
a. the ratio of the units of home currency to units of foreign currency is always equal to one. b. the denominator is always equal to one. c. the price is fixed by the government. d. the rate is adjustable in increments of 25 basis points.