Reference no: EM132211570
1. Identify the correct statement about the Louvre Accord.
It focused on the establishment of the European Monetary System (EMS) and the creation of a single currency, the euro.
It focused on the formulation of broad supervisory standards and guidelines and recommended statements of best practice in banking supervision.
It focused on stabilizing the value of the dollar through collective efforts.
It focused on forcing down the value of the U.S. dollar through collective efforts.
It focused on establishing the U.S. dollar as the reserve currency through collective efforts.
2. The purpose of the International Monetary Fund is to:
promote foreign direct investment into developing countries by insuring investors against political risk.
promote sustainable private sector development primarily by financing private sector projects and companies located in the developing world.
promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.
promote economic and social progress in developing countries by helping raise productivity so that their people may live a better and fuller life.
provide facilities for the conciliation and arbitration of investment disputes between member countries and individual investors.
3. When investors buy bonds, they receive interest payments:
usually if the organization makes profits.
usually at a fixed rate for the life of the bond.
usually at a varied rate for the life of the bond.
accumulated at the expiry of the life of the bond.
usually at the end of every two years.
4. Which of the following is true of equity securities?
It refers to the technique of protecting against the potential losses that result from adverse changes in exchange rates.
It refers to a loan from the investor to a company or government entity.
It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
It refers to the ownership of a part of a company.