Reading Guide: Section 8 Module 43

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

Reading Guide: Section 8 Module 43

Sign in to Google to save your progress. Learn more

First Name *

Last Name *

Class Period *

1st

2nd

3rd

4th

5th

6th

7th

8th

Option 5

1. What is the difference between fixed and floating exchange rates? *

2. What is the currency of the hypothetical country Genovia *

1 point

Genes

Human Genome

Geno

3. Explain how a country can "fix" an exchange rate with its currency? *

4. Why do countries have foreign exchange reserves? *

5. Check all of the following that a government can do to support their currency. *

1 point

Soak up or purchase (with dollars) the surplus of currency on the market

Changing monetary policy to shift either the demand or supply for the currency

Increasing transfer payments to people in need using a foreign currency

License the importers of goods

Let the markets self correct with fiscal manipulation

Required

6. What are some of the advantages of having a fixed exchange rate regarding inflation? *

7. Why does China NOT like the increased demand for the Yuan? *

8. Check all of the following for why the British did not adopt the Euro as their currency. *

1 point

National Pride

The economy would contract

The queen is on the Pound

Lose the Independence of monetary policy

Required

9. Why would a nation devalue its currency on purpose? *

10. Why would a nation revalue its currency? *

11. How different were the Bretton Woods Conference and the start of the Euro?

12. How can monetary policy affect an open economy with a flexible exchange rate? *

13. Using 43.2, why did Genovians increase their demand for dollars? *

1 point

The Genovian interest rate decreased

The Genovian interest rate increased

The Euro depreciated

The Euro appreciated

14. Do floating exchange rates insulate economies from international issues? Explain. *

15. How did the devaluation of the Pound lead to lower unemployment in the UK? *

Submit

Clear form

Never submit passwords through Google Forms.

This form was created inside of Township High School District 214.

Does this form look suspicious? Report