Todays international monetary system


Question 1: In order to protect newly-formed industry groups, some nations will charge duties on foreign goods from those sectors in order to allow them to get strong enough to compete internationally. This is called: ____________ argument.

Question 2: Speculative pressures on the US dollar occurred in 1971 when President Nixon closed the so-called gold window. There were two basic reasons for this speculation. They were_________ and __________.

Question 3: The problems resulting from mistrust between importers and exporters can be solved by using a third party, in whom both have ________. This function is usually performed by a __________.

Question 4: In today's international monetary system, some countries have adopted __________ rates, while others have ___________ their currency to another, while others have ___________ theirs to a basket of other currencies allowing their currency to _________ within a zone around the basket.

Question 5: In order to minimize risk, letters of credit should always be issued and as such they may be done on either a __________ or __________ basis.

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Finance Basics: Todays international monetary system
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