Global Financial Markets and Regional Economic Integration: Key Concepts and Institutions

Analyzes global financial markets and institutions' role in regional economic integration.

Benjamin Fisher
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Global Financial Markets and Regional Economic Integration: Key Conceptsand InstitutionsOn August 15, 1971 President ___________ announced that the US would no longer redeem currency for gold.a. Franklin D. Rooseveltb. Bill Clintonc. John F.Kennedyd. Richard NixonRichard Nixon(T/F) The OTC Market has gradually evolved into the largest, fastest and most flexible currency trading market in the world.FalseThe __________ of the world have become highly interdependent because of improvements in _________ and transportation technologies and the lowering of barriers to trade.a. Societies, educationb. Economies, communicationc. Cultures, living standardsd. Nations, religious acceptanceEconomies, communication(T/F) Currency arbitrage means buying a currency in one market at a low price and reselling moments later in another market at a higher price.TrueSelect the two reasons that global financial markets are important to borrowers.a. Expanding the supply of money and expanding lending opportunitiesb. Expanding lending opportunities and reduce the cost of moneyc. Reduce the cost of money and expand the supply of moneyd. Reducing risk and expanding lending opportunitiesC(T/F) In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of money supply.TrueParticipation is voluntary, but before qualifying to adopt the Euro, a country must participate in the _________ one of the convergence criteria for entry.a. ERMb. EMUc. ERM IId. EECe. ERM IERM II(T/F) With 11 beginning member in 1952, the European Union has now grown to a total of 28 members.False

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