Module 5

Which of the following was a reason that led to the collapse of the gold standard in 1973? A. Mismanagement of the US economy B. A cycle of competitive currency devaluations by various countries C. Expansion in the volume of international trade in the wake of the Industrial Revolution D. Agreement by governments to convert paper currency into gold on demand at a fixed rate

A

Which sector has seen the highest surges in stock prices in the decade following the 2008 financial crash? A. High-tech companies B. Retailers C. Car manufacturers D. Oil companies

A

A merger of pharmaceutical companies is likely to lead to all but which one of the following? A. Ability to put greater pricing pressure on health providers B. Lower prices for drugs in poor countries C. More marketing expenditure in global markets D. More investment in R&D

B

Why was the World Bank set up? A. To formulate a coordinated policy response to financial crises B. To promote economic development C. To preserve peace through international cooperation D. To maintain order in the international monetary system

B

Crypto currencies are based on which of the following? A. Java Script. B. Quantum Computing. C. Blockchain Technology. D. Fortran.

C

Increasing sovereign debt is a worry in all but which one of the following circumstances? A. When economic growth slows B. When public spending is spiralling out of control C. When public spending is falling D. When tax revenues fall

C

Which of the following refers to the gold standard? A. The common global standard of gold quality to be maintained B. The most valuable currency in the world at any given point in time C. Pegging currencies to gold and guaranteeing convertibility D. Conducting international trade by physically exchanging gold

C

Why has globalization increased financial risks? A. Global companies seek differing locations as part of their financial strategy. B. Global supply chains are increasingly complicated. C. Global capital flows can be highly volatile. D. Global production now involves many countries

C

All but which one of the following was a cause of the global financial crisis 2008? A. Regulatory failures B. The collapse in the US housing market C. Risky activities of global banks D. Too much government regulation of financial services

D

Hedge funds are criticized for which one of the following reasons? A. They make lots of money. B. Their activities can annoy corporate decision makers. C. They attract people who like to gamble. D. Their speculative activities can distort markets.

D

When did the gold standard prevail in the international finance? A. 1948 to the 1970s B. the 1900s to 1930 C. 1917 to 1939 D. the 1870s to 1914

D

Which of the following groups benefited most from quantitative easing? A. Low-paid workers B. Savers C. Indebted companies in emerging markets D. Investors in equities

D

Which of the following is not an advantage of the pegged exchange rate? A. It prevents overspending by the government B. It leads to financial stability. C. It deters speculators on the country's currency. D. It leads to capital flight.

D

Which of the following refers to a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand? A. Pegged exchange rate B. Forward exchange rate C. Fixed exchange rate D. Floating exchange rate

D

Which of the following was an outcome of Russia's currency crisis of 1998? . A. Austerity measures to reduce government debt B. A reduction in state ownership in the economy C. A resurgence of market reforms D. The fall of the government and election of Vladimir Putin

D