A)
lower by 75 million euro.
B)
higher by 75 million euro.
C)
worth $133.33 million.
D)
worth less than in 2006.
27.
Exchange rate crises:
A)
are extremely rare.
B)
are related to political crises.
C)
typically occur in every nation several times each year.
D)
are fairly common.
28.
A nation (featured in the text) that recently experienced a severe drop in the value of its currency is:
A)
New Zealand.
B)
Zimbabwe.
C)
Argentina.
D)
Canada.
29.
Argentina's currency crisis, which began in 2002, is blamed for:
A)
the lack of literacy and moral corruption.
B)
extreme poverty, high unemployment, and social unrest.
C)
disturbing the international trade balance.
D)
its subsequent high debts.
30.
In the 12-year period from 1997 to 2009, there were ____ instances of exchange rate crises worldwide.
A)
3
B)
10
C)
16
D)
24
31.
Since 1990, which of the following did NOT have an exchange rate crisis?
A)
China
B)
Korea
C)
Argentina
D)
Russia
32.
A severe drop in the value of a nation's currency usually results in:
A)
high inflation.
B)
low unemployment.
C)
enhanced ability to pay foreign debts.
D)
rising imports.
33.
Compared with earlier decades, the prevalence of exchange rate crises during the turn of the century (1997–2002) was:
A)
much less severe than in the 1970s with its high inflation and high unemployment.
B)
much more severe in rapidly developing economies such as in South America and East Asia.
C)
very typical of modern economic history, indicating a need for international cooperation.
D)
much reduced as a result of the swift and effective response by the International Monetary Fund.
34.
The fallout from an international currency crisis episode:
A)
has major and lasting effects on trading partners, financial relationships, and financial and political institutions.
B)
usually has a pattern of brief turmoil followed by periods of relative stability.
C)
is instrumental in getting needed debt relief for poor nations.
D)
is seen in permanent changes in the ways nations handle their international transactions.
35.
Nations undergoing currency and financial crises often experience:
A)
rising currency values.
B)
falling population.
C)
government financial problems.
D)
increasing GDP.
36.
The International Monetary Fund is an example of a(n):
A)
credit union.
B)
multinational bank.
C)
international development organization.
D)
bond-rating firm.
37.
In Argentina, when the exchange rate was floated in 2002, all of the following took place, EXCEPT a sharp:
A)
decline in the exchange rate of the peso.
B)
increase in the level of poverty.
C)
increase in inflation.
D)
decline in unemployment rates.
38.
Following its 2001 currency crisis, Argentina's unemployment:
A)
fell back to the pre-2001 level.
B)
was lower than during the crisis but higher than before.
C)
was at an all-time high.
D)
was unresponsive to the crisis.
39.
Globalization of financial markets provides benefits to nations but also carries risk to international stability due to:
A)
unmanageable debt and subsequent defaults.