Stage 5 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______In an era of financial globalization,funds can flow freely between countries because of efficient financial markets and currency exchange.
2._______The first era of financial globalization featured many restrictions imposed by governments on cross-border capital movements.
3._______When a government liberalizes its economy,domestic companies are able to borrow and lend freely both at home and abroad.
4._______The OECD countries are the world’s biggest FDI providers.
5._______The Bretton Woods system was terminated in 1971,a year which was widely viewed as the beginning of the second era of financial globalization.
6._______The OPEC countries benefitted a great deal from selling petroleum to developing countries and then investing their profits in developed countries.
7._______When domestic markets integrate with international markets,they tend to show greater price stability and fewer wild volume swings,and offer more financial alternatives.
8._______According to BIS statistics,average daily global foreign exchange turnover was $1 trillion in 1989.
9._______The world’s biggest recipient of FDI is the United States of America.
10._______While financial globalization can lead to market volatility,it brings problems to light and thus helps prevent a financial crisis from occurring.