Some economists are concerned that the financial rescue provided by the TARP will encourage financial investors and firms to take on greater risks in the future. This is an example of:

The term "dirty float" is used to describe a

a. black market in foreign currencies. b. floating currency that is "managed" by central bank authorities. c. nation that switches from free to fixed exchange rates. d. currency system used only in inflationary periods.

Which of the following is an example of U.S. foreign direct investment?

a. A U.S. based mutual fund buys stock in Eastern European companies. b. A U.S. citizen builds and operates a coffee shop in the Netherlands. c. A Swiss bank buys a U.S. government bond. d. A German tractor factory opens a plant in Waterloo, Iowa.