Similar to stock and commodity exchanges, the foreign exchange market is an organized structure with a central meeting place and formal licensing requirements.
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A nation experiences external balance if it achieves:
A. No net changes in its international gold stocks
B. Productivity levels equal to those of its trading partners
C. An increase in its money supply equal to increases overseas
D. Equilibrium in its balance of payments
The recent Euro zone crisis has shown that ( ) is a necessary component for the successful operation of the zone.
A. monetary policy coordination
B. fiscal policy coordination
C. both A and B
D. exchange rate policy coordination
Which is not a obstacle for greater coordination:
A. negotiation and reduced flexibility costs
B. disagreement over appropriate macroeconomic policies
C. not all countries gain from coordination
D. raising global welfare
A minimal level of coordination is:
A. the exchange of information
B. the acceptance of mutually consistent policies
C. joint action
D. all of the above
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