Question 1

As stipulated by the Bretton Woods conference,the goal of the World Bank was to _____.

Accepted Answer

A)   maintain order in the international monetary system
B)   promote FDI in developing countries
C)   set interest rates in member states
D)   establish a world currency
E)   promote economic developmentF) None of the above
G) B) and D)

Question 2

The Bretton Woods system of fixed exchange rates collapsed in 1973,and since then most countries have practiced a _________________.

Accepted Answer

A)   stepwise fixed rate exchange system
B)   more rigid and enforceable fixed exchange rate system
C)   managed-float system
D)   combination of managed float systems and fixed exchange rate systems
E)   pegged exchange rate systemF) A) and B)
G) C) and E)

Question 3

You are the Chief Financial Officer of a company that operates in almost two dozen countries around the world: in Europe,Central and South America,and Asia.You manufacture your product (which is used in the auto industry)in many countries,and also sell them in the same countries as well as others: all in the regions described above.You also import items from many countries,for use in your manufacturing process.
Assume that the Canadian dollar has recently risen against the U.S.dollar.How will this affect your business with American auto companies?

Accepted Answer

Most auto plants in the auto industry ar...

Question 4

The IMF Articles of Agreement were heavily influenced by all of the following except

Accepted Answer

A)   the worldwide financial boom.
B)   competitive devaluations.
C)   trade wars.
D)   high unemployment.
E)   hyperinflation.F) B) and D)
G) All of the above

Question 5

During the oil crisis in 1979,following the oil crisis of 1971 when the price of oil quadrupled,the Organization of Petroleum Exporting Countries increased the price of oil by ______.

Accepted Answer

A)   2 times
B)   2.5 times
C)   3 times
D)   4 times
E)   5 timesF) B) and E)
G) A) and B)

Question 6

Under the Bretton Woods system,if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy,the World Bank would agree to currency devaluation.

Accepted Answer

A) True 
 B)False

Question 7

In 1944,at the height of World War II,representatives from 44 countries met at _______________ to design a new international monetary system.

Accepted Answer

A)   Richmond, Virginia
B)   San Francisco, California
C)   Bretton Woods, New Hampshire
D)   Morris Plains, New Jersey
E)   Yalta, USSRF) A) and C)
G) C) and D)

Question 8

Revising the IMF's Articles of Agreement to reflect the new reality of floating exchange rates was the purpose of the Jamaica meeting.

Accepted Answer

A) True 
 B)False

Question 9

The gold standard was temporarily abandoned by Canada in what year?

Accepted Answer

A)   1870
B)   1889
C)   1914
D)   1924
E)   1934F) D) and E)
G) C) and D)

Question 10

The three main elements of the Jamaica Agreement were:

Accepted Answer

A)   the International Monetary Fund was established; gold was abandoned as a reserve asset; and floating rates were declared unacceptable
B)   floating rates were declared acceptable; gold was abandoned as a reserve asset; and total annual IMF quotas were increased to $41 billion
C)   floating rates were declared unacceptable; the International Monetary Fund was abolished; and the World Bank was established
D)   fixed rates were declared acceptable, gold was accepted as a reserve asset; and the total annual IMF quotas were increased to $41 billion
E)   all of these answers are correctF) A) and D)
G) C) and E)

Question 11

Although monetary discipline was a central objective,the Bretton Woods agreement recognized that a rigid policy of fixed exchange rates would be too inflexible.

Accepted Answer

A) True 
 B)False

Question 12

In some cases,a country's attempts to reduce its money supply growth and correct a persistent ______________ deficit could force the country into recession and create high unemployment.

Accepted Answer

A)   balance-of-payments
B)   fixed parity
C)   floating exchange rate
D)   fixed exchange rate
E)   bankF) B) and C)
G) A) and B)

Question 13

As shown in the opening case,a large part of Malawi's problems were caused because its currency was not allowed to be devalued.

Accepted Answer

A) True 
 B)False

Question 14

As stipulated by the Bretton Woods conference,the goal of the International Monetary Fund was to:

Accepted Answer

A)   maintain order in the international monetary system
B)   establish a world currency
C)   promote development
D)   set interest rates in members nations
E)   establish economic guidelines for countriesF) A) and B)
G) A) and C)

Question 15

The term fundamental disequilibrium was not defined in the _______________,but it was intended to apply to countries that had suffered permanent adverse shifts in the demand for their products.

Accepted Answer

A)   IMF Articles of Agreement
B)   IMF export assistance
C)   Fixed parities
D)   Adjustable parities
E)   World Bank's CharterF) B) and E)
G) A) and E)

Question 16

By 1880,most of the world's major trading nations,including Great Britain,Germany,Japan,and the United States,had adopted the

Accepted Answer

A)   diamond standard.
B)   gold standard.
C)   federal reserve standard.
D)   platinum standard.
E)   fixed exchange rate system.F) None of the above
G) A) and B)

Question 17

The great strength claimed for the gold standard was that it contained a powerful mechanism for simultaneously achieving balance-of-trade equilibrium by all countries.

Accepted Answer

A) True 
 B)False

Question 18

The IMF has kept its policies prescriptions and approaches consistent since it was formed.

Accepted Answer

A) True 
 B)False

Question 19

The Bretton Woods conferences occurred in ______________ and established the basic framework for the post-World War II international monetary system.

Accepted Answer

A)   1944
B)   1959
C)   1968
D)   1988
E)   1999F) B) and C)
G) B) and D)

Question 20

Over the past 30 years,the activities of the IMF have ______________.

Accepted Answer

A)   expanded
B)   declined
C)   expanded in developed countries but declined in underdeveloped countries
D)   expanded in underdeveloped countries but declined in developed countries
E)   been increasingly criticized as being an instrument of the U.S. governmentF) B) and D)
G) A) and E)

Exam 10: The Global Monetary System

The gold standard was temporarily abandoned by Canada in what year?

Correct Answer
verified

Under the Bretton Woods system,if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy,the World Bank would agree to currency devaluation.

Correct Answer
verified

As stipulated by the Bretton Woods conference,the goal of the International Monetary Fund was to:

Correct Answer
verified

By 1880,most of the world's major trading nations,including Great Britain,Germany,Japan,and the United States,had adopted the

Correct Answer
verified

The great strength claimed for the gold standard was that it contained a powerful mechanism for simultaneously achieving balance-of-trade equilibrium by all countries.

Correct Answer
verified

Correct Answer
verified
Most auto plants in the auto industry ar...
View Answer

Although monetary discipline was a central objective,the Bretton Woods agreement recognized that a rigid policy of fixed exchange rates would be too inflexible.

Correct Answer
verified

The IMF has kept its policies prescriptions and approaches consistent since it was formed.

Correct Answer
verified

The three main elements of the Jamaica Agreement were:

Correct Answer
verified

As shown in the opening case,a large part of Malawi's problems were caused because its currency was not allowed to be devalued.

Correct Answer
verified

The IMF Articles of Agreement were heavily influenced by all of the following except

Correct Answer
verified

The Bretton Woods conferences occurred in ______________ and established the basic framework for the post-World War II international monetary system.

Correct Answer
verified

Over the past 30 years,the activities of the IMF have ______________.

Correct Answer
verified

The term fundamental disequilibrium was not defined in the _______________,but it was intended to apply to countries that had suffered permanent adverse shifts in the demand for their products.

Correct Answer
verified

The Bretton Woods system of fixed exchange rates collapsed in 1973,and since then most countries have practiced a _________________.

Correct Answer
verified

In 1944,at the height of World War II,representatives from 44 countries met at _______________ to design a new international monetary system.

Correct Answer
verified

During the oil crisis in 1979,following the oil crisis of 1971 when the price of oil quadrupled,the Organization of Petroleum Exporting Countries increased the price of oil by ______.

Correct Answer
verified

As stipulated by the Bretton Woods conference,the goal of the World Bank was to _____.

Correct Answer
verified

In some cases,a country's attempts to reduce its money supply growth and correct a persistent ______________ deficit could force the country into recession and create high unemployment.

Correct Answer
verified

Revising the IMF's Articles of Agreement to reflect the new reality of floating exchange rates was the purpose of the Jamaica meeting.

Correct Answer
verified

Exam 10: The Global Monetary System

The gold standard was temporarily abandoned by Canada in what year?

Correct AnswerverifiedShow Answer

Under the Bretton Woods system,if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy,the World Bank would agree to currency devaluation.

Correct AnswerverifiedShow Answer

As stipulated by the Bretton Woods conference,the goal of the International Monetary Fund was to:

Correct AnswerverifiedShow Answer

By 1880,most of the world's major trading nations,including Great Britain,Germany,Japan,and the United States,had adopted the

Correct AnswerverifiedShow Answer

The great strength claimed for the gold standard was that it contained a powerful mechanism for simultaneously achieving balance-of-trade equilibrium by all countries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMost auto plants in the auto industry ar...View AnswerShow Answer

Although monetary discipline was a central objective,the Bretton Woods agreement recognized that a rigid policy of fixed exchange rates would be too inflexible.

Correct AnswerverifiedShow Answer

The IMF has kept its policies prescriptions and approaches consistent since it was formed.

Correct AnswerverifiedShow Answer

The three main elements of the Jamaica Agreement were:

Correct AnswerverifiedShow Answer

As shown in the opening case,a large part of Malawi's problems were caused because its currency was not allowed to be devalued.

Correct AnswerverifiedShow Answer

The IMF Articles of Agreement were heavily influenced by all of the following except

Correct AnswerverifiedShow Answer

The Bretton Woods conferences occurred in ______________ and established the basic framework for the post-World War II international monetary system.

Correct AnswerverifiedShow Answer

Over the past 30 years,the activities of the IMF have ______________.

Correct AnswerverifiedShow Answer

The term fundamental disequilibrium was not defined in the _______________,but it was intended to apply to countries that had suffered permanent adverse shifts in the demand for their products.

Correct AnswerverifiedShow Answer

The Bretton Woods system of fixed exchange rates collapsed in 1973,and since then most countries have practiced a _________________.

Correct AnswerverifiedShow Answer

In 1944,at the height of World War II,representatives from 44 countries met at _______________ to design a new international monetary system.

Correct AnswerverifiedShow Answer

During the oil crisis in 1979,following the oil crisis of 1971 when the price of oil quadrupled,the Organization of Petroleum Exporting Countries increased the price of oil by ______.

Correct AnswerverifiedShow Answer

As stipulated by the Bretton Woods conference,the goal of the World Bank was to _____.

Correct AnswerverifiedShow Answer

In some cases,a country's attempts to reduce its money supply growth and correct a persistent ______________ deficit could force the country into recession and create high unemployment.

Correct AnswerverifiedShow Answer

Revising the IMF's Articles of Agreement to reflect the new reality of floating exchange rates was the purpose of the Jamaica meeting.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Most auto plants in the auto industry ar...
View Answer

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verified

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Correct Answer
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Correct Answer
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Correct Answer
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