POS 486 FINAL REVIEW SCRIPT 2026 TESTED QUESTIONS CORRECT RESPONSES

POS 486 FINAL REVIEW SCRIPT 2026
TESTED QUESTIONS CORRECT RESPONSES

● Since the 1970s, in regard to the current account, the United States has
generally had


a) a deficit
b) a surplus
c) a balance
d) volatility Answer: a) a deficit


● 3) The financial account includes


a) the capital account.
b) secondary income.
c) portfolio investment.
d) services trade. Answer: c) portfolio investment.


● 4) Orthodox liberals advise governments to deal with balance of
payments deficits with
a) tariffs.
b) monetary policy.

, c) currency devaluation.
d) financing. Answer: b) monetary policy.


● 5) When a state lowers the official value of its currency, it is engaging
in


a) depreciation.
b) appreciation.
c) revaluation.
d) devaluation. Answer: d) devaluation.


● 6) In the interwar period (between World Wars I and II), the world had
(Possibly)


a) a gold standard and floating exchange rates.
b) a gold exchange standard and fixed exchange rates.
c) only floating exchange rates.
d) only a gold standard. Answer: b) a gold exchange standard and fixed
exchange rates.


● 7) The type of monetary regime arranged at the Bretton Woods
conference is best described as:
a) a managed floating regime.