Chapter 6

International Monetary Relations 

Quizzes 

Test your knowledge with the Chapter 6 quiz! 

Question 1

The eurocurrency market refers to currency that is deposited and trade in:

On-line exchanges

Over the counter markets

Offshore banks

None of the above

None

Question 2

Which of the following are functions of money? Choose all that apply.

Store of value

Unit of measurment of value

Reflection of government’s stability

Medium of exchange

Question 3

Which of the following are components of the balance of payments? Choose all that apply.

Capital account

Secondary account

Financial account

Current account

Question 4

“Exorbitant privilege” refers to the unique role of which currency?

Question 5

SDRs are a specialized medium of exchange run by the .

Question 6

Depreciation is when a state chooses to lower the value of its currency.

TRUE

FALSE

None

Question 7

The financial account includes exports and imports of goods and services.

TRUE

FALSE

None

Question 8

The U.S. has the highest external debt in the world.

TRUE

FALSE

None

Question 9

The gold standard helped to stabilize flexible exchange rates.

TRUE

FALSE

None

Time’s up

Watch, Listen, Read, and Explore 

This content includes videos, podcasts, articles, readings, and other resources to help you understand and explore the content covered in the chapter. Most readings are freely available, although anything marked with an asterisk may require institutional log-in (e.g., through your university). Freely available data sources are also included to explore and further research. 

Videos 

• See Lecture Video
• Lecture by Martin Daunton on the Great Depression and embedded liberalism: https://www.youtube.com/watch?v=F6KC0ANebNk  
• EconPlusDal video explainer: https://www.youtube.com/watch?v=bel_y5ka80M  
• Niall Ferguson, the Ascent of Money, episodes: https://www.youtube.com/playlist?list=PLSP9UbXmBuqq2VIdj2JhYgjlYVWrWC2or  
• Commanding Heights video series on stagflation: https://www.pbs.org/wgbh/commandingheights/hi/story/ch_menu.html  
• Brief history of the euro (Trans European Policy Studies Assn): https://www.youtube.com/watch?v=2EjAznh_BGE  

Podcasts 

• Institute of International Finance, https://www.iif.com/Products/Podcasts  
• FT podcasts, https://www.ft.com/podcasts  
• Financial Theory – John Geanakoplos, Yale University open course podcast: https://podcasts.apple.com/gb/podcast/financial-theory-audio/id428549105 

Readings 

• Balance of payments explainer (Fed. Reserve Bank of Australia): https://www.rba.gov.au/education/resources/explainers/the-balance-of-payments.html  
• IMF overview: https://www.imf.org/external/pubs/ft/bop/2007/pdf/chap2.pdf  
• “An Exorbitant Privilege Now at Risk? The Once (and Future?) Almighty Dollar” (Keith Rockwell): https://www.wilsoncenter.org/article/exorbitant-privilege-now-risk-once-and-future-almighty-dollar  
• “The Principles of Embedded Liberalism: Social Legitimacy and Global Capitalism” (Rawi Abdelal & John Ruggie): https://www.hbs.edu/faculty/Pages/item.aspx?num=36533  
• Timeline of the euro (European Central Bank): https://www.ecb.europa.eu/ecb/history-arts-culture/history/emu/html/index.en.html  

Selected Sources of Free Data 

• IMF exchange rate data: https://www.imf.org/external/np/fin/ert/GUI/Pages/CountryDataBase.aspx 
• IMF BOP data: https://data.imf.org/?sk=7a51304b-6426-40c0-83dd-ca473ca1fd52  
• IMF voting power, https://www.imf.org/en/About/executive-board/members-quotas