chapter 8 part 2 Flashcards
(6 cards)
1
Q
The 1976 IMF agreement establishing flexible exchange rates among IMF members
A
Jamaica Agreement
1
Q
A problem in which a national currency that is also a reserve currency will eventually run a deficit, leading to lack of confidence in the reserve currency and a financial crisis
A
Triffin paradox
2
Q
Institution for central bankers; operates to build cooperation in order to foster monetary and financial stability
A
Bank for International Settlements (BIS)
3
Q
The process of buying and selling instantaneously to make profit with no risk
A
Arbitrage
4
Q
Assumption that the unpredictability of factors suggests that the best predictor of tomorrow’s prices is today’s prices
A
Random walk hypothesis
5
Q
A
