Reference no: EM132766422

Why is the U.S. dollar considered more important than the Singapore dollar?

• A- The U.S. dollar can be used to purchase copper.
• B- The U.S. dollar has a finite amount of supply.
• C- The value of the U.S. dollar is determined by the Federal Reserve.
• D- The value of the U.S. dollar is determined by the International Monetary Fund.

Which of the following is the constraint of having USD as the key reserve currency?

• A- Having USD as a key reserve currency will help control inflation globally.
• B- It will drastically increase the value of gold, making gold unaffordable to many investors.
• C- The growth of international trades might be slowed due to USD's reserve currency status.
• D- The global financial cycle is in fact a U.S. interest rate and a U.S. dollar cycle.

If the trade-weighted euro strengthens significantly over time, it is likely that

• A- There will be less imported inflation for the U.S.
• B- There will be less imported inflation for Europe
• C- The European Central Bank will raise short-term interest rates
• D- The European Central Bank will raise long-term interest rates

When the trade-weighted dollar strengthens over a period, historically,

• A- Global exports as a percentage of GDP increase
• B- Global exports as a percentage of GDP decrease
• C- Gold price weakens as well
• D- The Commerce Department will change the weights

Which market promoted the continued role of the U.S. dollar as the global reserve currency after Nixon closed the gold window in 1971?

• A- Natural gas
• B- Silver
• C- Oil
• D- Gold