Module 3 lessons learned points earned

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

1880s

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

central banks establish the values for their currencies

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 into debt?

the balance of trade

Since its creation in 1944, the role of the IMF in the monetary and finance structure has been to A) helping developing countries deal with a variety of monetary and financial crises B)create an orderly international monetary system C) help members with balance of payments problems on a short term basis D) all the above

D) all the above

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

False

The GATT was one of the organizations formed at the Bretton Woods conference. True or False?

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. True or False?

False

Under Bretton Woods, all currencies were pegged to gold. True or False?

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

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

Nixon

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 or False?

True

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

True

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

True

Under the classic gold standard, different currency values were each pegged (fixed) to the price of gold, true or false?

True

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

Zero

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

balance of payment crisis

The primary purpose of the international monetary system is to

facilitate international monetary exchanges.

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

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

markets establish the values for currencies

The Bretton Woods system...

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