Chapter 29 Post Quiz
Exchange Rates and the International Financial System

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Open economy	a. a systematic statement of all economic transactions between a country and the rest of the world.
	2. Balance of international transactions	b. the price of one currency in terms of another currency.
	3. Financial account	c. will show all imports and exports of goods and services along with investment income and transfer payments.
	4. Current account	d. the decrease in the value of a floating currency.
	5. Services	e. will show all the purchases and sales of financial assets and liabilities for a nation.
	6. Exchange rate	f. a post World War II exchange rate mechanism.
	7. Depreciation	g. are a growing part of international trade for the United States.
	8. Purchasing-Power-Parity	h. engages in international trade.
	9. Bretton Woods System	i. states that a nation's exchange rate will tend to equalize the cost of buying traded goods at home with the cost of buying those goods abroad.
	10. Currency board	j. a monetary institution that issues only currency that is fully backed by foreign assets in a key foreign currency, usually the U.S. dollar.