Which of the following is NOT true about the short-term capital flows?
A. Short-term capital flows are defined as those with a maturity of one year or less.
B. Short-term capital flows have good liquidity.
C. The impacts of short-term capital flows on the domestic economy are mainly reflected in the balance of payments, exchange rate and monetary policy.
D. Short-term capital flows are those with a maturity of more than one year.
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Which of the following is the NOT feature of the post Bretton Woods era?
A rise in nationalism and increasingly noncooperative policy making.
B. Fixed dollar exchange rates were given up by the developed countries.
Capital account restrictions were widely eliminated or reduced.
D. Economic reforms took place in the developing countries.
Which period is called the post Bretton Woods era?
A. Before 1914
B. 1914-1945
C. 1945-1971
D. After 1971
With arbitrage, a trader attempts to purchase a foreign currency at a low price and, at a later date, resell the currency at a higher price in order to make a profit.
Which of the following is NOT feature of the period 1914-1945?
A. The global economy was destroyed by the Two world wars and the Great Depression.
B. A rise in nationalism and increasingly noncooperative policy making.
Capital controls became widespread.
D. International investment was welcome.