Module 3 Political Disparity

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

0

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

1880s

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

what type of exchange rates system was the gold standard

fixed

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

All of the above

In the International Monetary system, trade is linked to money through

BOP

Under Bretton Woods, all currencies were pegged to gold.

F

Based on information from the etext, it is clear that the IMF embodied structuralism idea that states should control markets!

False

Based on information in the etext, "under IMF articles of agreement, members had to peg their currencies to the Japanese Yen."

False

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.

False

The GATT was one of the organizations formed at the Bretton Wood 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.

False

A pivotal player at Bretton Woods in 1944, that gave rise to many post-Word 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

According to the etext, "as World War II drew to a close experts were assembled in Bretton Woods, New Hampshire in 1944 to design a set of institutions that would help establish the International Monetary Fund."

T

Based on information in the etext, "currency controls or restrictions were allowed for transactions recorded on the financial accounts."

T

Based on information in the etext, "voting power is determined by what the IMF calls a quota."

T

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

T

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

T

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

T

Based on information in the etext, an "important requirement designed to facilitate the expansion of international trade was that countries agreed not to put any restrictions or controls on exchange of currencies when that exchange was intended for transactions on the current account."

True

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

central banks establish the value for other currencies

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 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 -was a type of floating exchange system -was an attempt to promote state socialism -was an extension of post-war neomecantilism

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