Session 5 - Financial Forces

An international financial system where exchange rates are fixed to the value of gold:

• Bretton Woods Convention System

• Fixed Exchange Rate

• Floating Exchange Rate

• The Gold Standard

What was the primary purpose of the Bretton Woods Conference and how was it utilized in the international financial system?

• To establish a fixed exchange rate system pegged to the value of gold

• To promote free trade of goods and services among participating nations

• To advocate for the use of cryptocurrency as a global currency

• To create a system for international banking.

The following international financial system is characterized by exchange rates determined by supply and demand in the foreign exchange market.

• Bretton Woods Conference Exchange System

• Cryptocurrency as a global currency

• Fixed Exchange Rate System

• Floating Exchange Rate System

What are the primary factors discussed in the TED Talk "What Determines the Value of Our Money"?

• Government regulations and legislation of US congress

• Supply and demand dynamics, trust, and confidence

• Historical trends and cultural influences

• Technological advancements and digital currencies

How does the Federal Reserve influence the value of money, as discussed in the TED Talk "What Determines the Value of Our Money"?

• By directly setting the value of the currency through government mandate

• By adjusting interest rates and implementing monetary policies

• By printing an unlimited supply of physical currency for circulation

• By promoting international trade agreements to stabilize currency values

The following currencies are allowed by their central banks to fluctuate freely against each other except for one:

• U. S. dollar

• British pound sterling

• North Korean won

• Japanese yen

The following currencies are not allowed by their central banks to fluctuate freely against each other except for one:

• Angolan Kwanza

• Chilean Peso

• North Korean won

• Euro

What does the ratio of Total external debt to Exports indicate about a country's financial risk?

• The country's ability to repay its debt without relying on its exports

• The country's sole reliance on exports for debt repayment

• The country's overall economic stability

• The country's vulnerability to default on debt payments due to limited export earnings

What does the ratio of Official Reserves to Total external debt indicate about a country's financial risk?

• The country's ability to easily pay off its debts using its foreign currency reserves

• The country's reliance on borrowing from external sources to maintain its foreign currency reserves

• The country's economic stability

• The country's vulnerability to currency devaluation

The following index is an assessment of a country's level of economic regulation, taxation, and property rights protection:

• GINI Index

• External debt stocks by exports ratio

• Total external debt / GNI ratio

• Economic Freedom Index