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© 2014 Pearson Canada Inc.#
An ECU was ____.
A) a paper substitute for gold issued by the IMF
B) a loan by European countries to the IMF
C) a paper currency issued by the European Common Market
D) a monetary unit created by the European Monetary System
Answer: D
Diff: 2 Type: MC Page Ref: 504
Skill: Recall
Objective List: 20.3 Summarize the arguments for and against capital controls
Under the Exchange Rate Mechanism of the European Monetary System, when the British
pound depreciated below its lower limit against the German mark, the Bank of England was
required to buy ____ and sell ____, thereby ____ international reserves.
A) pounds; marks; losing
B) pounds; marks; gaining
C) marks; pounds; gaining
D) marks; pounds; losing
Answer: A
Diff: 2 Type: MC Page Ref: 504 - 506
Skill: Recall
Objective List: 20.3 Summarize the arguments for and against capital controls
Under the Exchange Rate Mechanism of the European Monetary System, when the British
pound depreciated below its lower limit against the German mark, the German central bank was
required to buy ____ and sell ____, thereby ____ international reserves.
A) pounds; marks; losing
B) pounds; marks; gaining
C) marks; pounds; gaining
D) marks; pounds; losing
Answer: B
Diff: 2 Type: MC Page Ref: 504 - 506
Skill: Recall
Objective List: 20.3 Summarize the arguments for and against capital controls
Under the Exchange Rate Mechanism of the European Monetary System, when the German
mark depreciated below its lower limit against the British pound, the Bank of England was
required to buy ____ and sell ____, thereby ____ international reserves.
A) pounds; marks; losing
B) pounds; marks; gaining
C) marks; pounds; gaining
D) marks; pounds; losing
Answer: C
Diff: 2 Type: MC Page Ref: 504 - 506
Skill: Recall
Objective List: 20.3 Summarize the arguments for and against capital controls