76. The value of SDRs determined by a weighted average : 1401831
76. The value of SDRs is determined by a weighted average of a basket of four
77. To expand services for countries in monetary difficulties, the IMF created Special
Drawing Rights (SDRs).
78. Another creation of the Bretton Woods Agreement was the International Bank for
79. ______________ float allows for a limited amount of government intervention to
soften sudden swings in the value of a currency.
80. Today, the global economy is increasingly dominated by three major currency
blocs which include the U.S. dollar, the Japanese yen, and the euro.
81. Foreign exchange refers to the exchange of one country’s money for that of
82. One of the most fundamental determinates of the exchange rate is purchasing power
83. The Economist publishes a PPP study every year based on McDonald’s Big Mac
hamburger. This index is called the Big Mac Induction.
84. If payment on a transaction is to be made immediately, the purchaser has no choice
other than to buy foreign exchange on ________________________.
85. Protecting oneself against potential loss is called _________________.