Which of the following statements were TRUE? The United States became a net creditor country after the First World War. France used high interest rates policy to accumulate more gold reserves in the 1920 s. Britain and France provided loans to Germany in the 1920 s after the First World War. Britain used high interest rates policy to accumulate more gold reserves in the 1920s

A competitive effect shows how the change in exchange rate which alters the firm’s competitive financial position influences the cash flow of a business.  Select one: True False

To control the money supply and prevent inflation, the Peoples Bank of China (PBC), which is confronted with a permanent current account and capital account surpluses, uses mostly two tools to sterilize the foreign currency inflow the variation of Required Reserved Ratio (which obliges the banks to make a deposit to the Central Bank corresponding to a percentage of the credits they grant) and the selling of Central Bank Bills . Elaborate and explain the pros and cons of each type of intervention

In the paper by Degrauwe, The Governance of a Fragile Eurozone by Paul De Grauwe, he argues that the fundamental problem in the Euro-zone today is that countries cannot borrow in their own currencies.  Explain what he means by this and what the consequences of this are for Euro-zone countries currently in crisis. DeGrauwe argues that countries in the Eurozone monetary union can face both liquidity and solvency crises – problems that could not occur in a country that issues its own currency, like the UK.  Explain. Refer to his comparison of Spain to the UK.

argues about the intervention of monetary policy as instruments to promote growth, sustainability and economic stability of a country. (Provide a detailed example).

If the U.S. government has easy (cheap) access to foreign savings, through what mechanism will crowding out occur?     interest rates   current taxes   future taxes   money supply

please solve

Under the Bretton Woods system Group of answer choices a strict gold standard adhered to. demand for international reserves outpaced the supply of gold the US and the Yen were tied to one another. Nixon kept the gold window open until the collapse of the system.

Consider two countries: Japan and South Korea. In 1996 Japan experienced relatively slow output growth (1%), while South Korea had relatively robust output growth (5%). Suppose the Bank of Japan allowed the money supply to grow by 1% each year, while the Bank of Korea chose to maintain relatively high money growth of 15% per year. Treat South Korea as the home country and Japan as the foreign country, and use the simple monetary model (with constant L) to answer the following questions:   a. What is the inflation rate in South Korea ()? How about Japan ()?                   b. What is the expected rate of depreciation in the Korean won relative to the Japanese yen?       c. Suppose the Bank of Korea decreases the money growth rate from 15% to 10%. What is the new inflation rate in South Korea?                       d. Using time series diagrams (impulse graphs), illustrate how this decrease in the money growth rate affects South Korea’s nominal money supply MK; prices PK, real money…

Maintaining a strong dollar in the international currency market is one of the primary goals of Canada’s Central Bank.  Select one: True False