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.
