the economics of money, banking, and financial markets

618 #

© 2014 Pearson Canada Inc.#

36. 
    

    Under the Bretton Woods system, a country running a balance of payments deficit ____
    international reserves, and had to implement ____ monetary policy to strengthen its
    currency.
    A) lost; expansionary
    B) lost; contractionary
    C) gained; expansionary
    D) gained; contractionary
    Answer: B
    Diff: 2 Type: MC Page Ref: 503
    Skill: Recall
    Objective List: 20.3 Summarize the arguments for and against capital controls

    
    


37. 
    

    Under the Bretton Woods system, a country running a balance of payments ____ lost
    international reserves, and had to implement ____ monetary policy to strengthen its
    currency.
    A) surplus; expansionary
    B) surplus; contractionary
    C) deficit; expansionary
    D) deficit; contractionary
    Answer: D
    Diff: 2 Type: MC Page Ref: 503
    Skill: Recall
    Objective List: 20.3 Summarize the arguments for and against capital controls

    
    


38. 
    

    Under the Bretton Woods system, a country running a balance of payments surplus
    ____ international reserves, and had to implement ____ monetary policy to weaken its
    currency.
    A) lost; expansionary
    B) lost; contractionary
    C) gained; expansionary
    D) gained; contractionary
    Answer: C
    Diff: 2 Type: MC Page Ref: 503
    Skill: Recall
    Objective List: 20.3 Summarize the arguments for and against capital controls