Rich & Poor Nations Lesson 3

The gold standard emerged at the center of the international monetary system in the ___________ until the First World War.

1880s

In the balance of payments accounting system, if a country

Has a current account deficit, it must have a capital account surplus

In the balance of payments accounting system, if a country,

Has a current account surplus it must have a capital account deficit

Since its creation in 1944, the role of the IMF in the monetary and finance structure has been to

All of the Above

The fundamental cause of collapse of the Bretton Woods was a _________________.

Balance of Payment Crisis

The most important feature of a fixed exchange - rate system is that

Central banks establish the values for their currencies

The primary purpose of the international monetary system is to

Facilitate international monetary exchanges

Jimmy Carter was the sitting American President who presided over the end of the US dollar being Pegged to gold at $35 to gold at $45 an ounce and other currencies valuation tied to that of the dollar.

False

The GATT was one of the organizations formed at the Bretton Woods conference.

False

The classic gold standard that existed from the late 19th century until the end of World War I was an example of a floating exchange-rate system.

False

Under Bretton Woods, all currencies were pegged to gold.

False

What type of exchange rates system was the gold standard?

Fixed

A pivotal player at Bretton Woods in 1944, that gave rise to many post world war II international institutions was_______

John Maynard Keynes

The most important feature of a floating exchange-rate system is that

Markets establish the values for currencies

President ________________________ put an end to the Bretton Woods post-war monetry regime when delinked the dollar from gold in 1971.

Nixon

In the international monetary system, trade is linked to money through

The Balance of Payments

Which indicator is most important when it comes to determining the balance of payments and whether or not a nation is going to debt?

The Balance of Trade

Overall, J.M. Keynes main idea was for Bretton Woods to create a liberal system of international economic relations among Western member states, while letting individual nations domestic markets and insulate them from depressions and other economic dislocations.

True

The 1944 Bretton Woods Conference resulted in the formation of the International Monetary Fund (IMF).

True

The Bretton Woods system represented the first time that governments explicitly made exchange rates a matter of international cooperation.

True

Under the classic gold standard, different currency values were each pegged (fixed) to the price of gold.

True

In a balance of payments accounting system, credits and debits must sum to

Zero

The Bretton Woods system

represented the first time that governments explicitly made exchange rates a matter of international cooperation.