The Problem of Currency Mismatch of Net External Wealth Can

question 137

Multiple Choice

The problem of currency mismatch of net external wealth can be mitigated by:

• A) ensuring the creditor countries always denominate loans in U.S. dollars.
• B) promoting internal financial markets where foreign securities can be traded.
• C) restricting borrowing yet encouraging lending.
• D) piling up large stocks of foreign currency assets in central bank reserves and sovereign wealth funds.

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Definitions:

Ethical Responsibility

An obligation to act in ways that are morally right, fair, and beneficial to both individuals and society as a whole.

Confidentiality

The obligation to keep personal, sensitive, or specified information private and not disclose it without proper authorization.

Field Placement

Hands-on training or work experience in a real-world professional setting, often part of academic or vocational training programs.

Cardinal Values

Fundamental values that are considered primary or of paramount importance in a person's life or in a society.