Question 1

Bank deposits made by individuals cannot be commingled by the bank for its own use.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following describes a currency basket in monetary transaction?

Accepted Answer

A)  an exchange rate system wherein a currency's value is allowed to fluctuate according to the foreign exchange market 
B)  a contractual provision that says that the price will be adjusted according to the inflation rate 
C)  a selected group of currencies whose weighted average is used to define the amount of an obligation 
D)  a scheme for fixing the exchange rate of a currency by matching its value to the value of another single currency 
A)  an exchange rate system wherein a currency's value is allowed to fluctuate according to the foreign exchange market 
B)  a contractual provision that says that the price will be adjusted according to the inflation rate 
C)  a selected group of currencies whose weighted average is used to define the amount of an obligation 
D)  a scheme for fixing the exchange rate of a currency by matching its value to the value of another single currency

Question 3

Which of the following terms refers to the nearly simultaneous purchase of a commodity (such as a currency) in one market and its sale in another to profit from the price differential?

Accepted Answer

A)  allonge 
B)  expropriation 
C)  arbitrage 
D)  condonation 
A)  allonge 
B)  expropriation 
C)  arbitrage 
D)  condonation

Question 4

The principle that an obligation to pay a particular sum of money is fixed and does not change even if the purchasing power or foreign exchange rate of the money does change is known as ________.

Accepted Answer

A)  the choice-of-law rule 
B)  centrism 
C)  nominalism 
D)  the stabilization clause 
A)  the choice-of-law rule 
B)  centrism 
C)  nominalism 
D)  the stabilization clause

Question 5

The IMF Agreement grants to the ________ of the Fund the authority to interpret the provisions of the Agreement.

Accepted Answer

A)  Board of Governors 
B)  Executive Board 
C)  members 
D)  Central Council 
A)  Board of Governors 
B)  Executive Board 
C)  members 
D)  Central Council

Question 6

The IMF was created immediately after the collapse of the gold standard system.

Accepted Answer

A) True 
 B)False

Question 7

All the shares of the Bank for International Settlements are owned by the World Bank and the IMF.

Accepted Answer

A) True 
 B)False

Question 8

The Concessional IMF Facility is designed ________.

Accepted Answer

A)  to help countries address short-term balance-of-payments problems 
B)  for providing bridging loans to member states while the IMF deliberates about whether to provide other funds to the particular member state 
C)  for low-income member countries with protracted balance-of-payment problems 
D)  to help a country deal with a temporary depletion of its foreign exchange reserves due to a natural disaster 
A)  to help countries address short-term balance-of-payments problems 
B)  for providing bridging loans to member states while the IMF deliberates about whether to provide other funds to the particular member state 
C)  for low-income member countries with protracted balance-of-payment problems 
D)  to help a country deal with a temporary depletion of its foreign exchange reserves due to a natural disaster

Question 9

IMF's Articles of Agreement establishes ________.

Accepted Answer

A)  gold bullion as a standard of foreign exchange 
B)  gold coins as a the primary source of foreign exchange 
C)  SDR as the international form of currency 
D)  a system for currency support 
A)  gold bullion as a standard of foreign exchange 
B)  gold coins as a the primary source of foreign exchange 
C)  SDR as the international form of currency 
D)  a system for currency support

Question 10

Which of the following is the most commonly used short-term liquid instrument for trading in the interbank market?

Accepted Answer

A)  a certificate of deposit 
B)  a deed 
C)  a letter of credit 
D)  a check 
A)  a certificate of deposit 
B)  a deed 
C)  a letter of credit 
D)  a check

Question 11

How does a bank transfer money internationally?

Accepted Answer

A bank transfers money internationally b

Question 12

Explain the role of the Bank for International Settlements as the central banks' bank?

Accepted Answer

One of the BIS's main functions is to se

Question 13

Describe the significance of IMF quotas.

Accepted Answer

To become a member of the IMF, a state m

Question 14

Explain a future contract.

Accepted Answer

A future contract (or future) is simply

Question 15

Which of the following is the reserve currency used by the IMF?

Accepted Answer

A)  Ven 
B)  Special Drawing Right (SDR) 
C)  European Currency Unit (ECU) 
D)  World Currency Unit (Wocu) 
A)  Ven 
B)  Special Drawing Right (SDR) 
C)  European Currency Unit (ECU) 
D)  World Currency Unit (Wocu)

Question 16

What is the basic code of conduct that member nations are obligated to follow upon joining the IMF?

Accepted Answer

A member state obligates itself upon joi

Question 17

Which of the following organizations issues bank notes and coins and regulates the quantity of money in circulation?

Accepted Answer

A)  the World Bank 
B)  the International Monetary Fund 
C)  A commercial bank 
D)  A central bank 
A)  the World Bank 
B)  the International Monetary Fund 
C)  A commercial bank 
D)  A central bank

Question 18

Only members of the IMF can become members of the World Bank.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of the IMF's credit tranche?

Accepted Answer

A)  Each credit tranche is equivalent to 50 percent of the member's quota. 
B)  A member is entitled to four credit tranches. 
C)  A credit tranche cannot be used to make balance-of-payments. 
D)  All credit tranches are subject to similar rules or conditions. 
A)  Each credit tranche is equivalent to 50 percent of the member's quota. 
B)  A member is entitled to four credit tranches. 
C)  A credit tranche cannot be used to make balance-of-payments. 
D)  All credit tranches are subject to similar rules or conditions.

Question 20

One of the major reform measures of the Basel III is to improve risk management and governance of the banking system.

Accepted Answer

A) True 
 B)False

Bank deposits made by individuals cannot be commingled by the bank for its own use.

Which of the following describes a currency basket in monetary transaction?

Which of the following terms refers to the nearly simultaneous purchase of a commodity (such as a currency) in one market and its sale in another to profit from the price differential?

The principle that an obligation to pay a particular sum of money is fixed and does not change even if the purchasing power or foreign exchange rate of the money does change is known as ________.

The IMF Agreement grants to the ________ of the Fund the authority to interpret the provisions of the Agreement.

The IMF was created immediately after the collapse of the gold standard system.

All the shares of the Bank for International Settlements are owned by the World Bank and the IMF.

The Concessional IMF Facility is designed ________.

IMF's Articles of Agreement establishes ________.

Which of the following is the most commonly used short-term liquid instrument for trading in the interbank market?

How does a bank transfer money internationally?

Explain the role of the Bank for International Settlements as the central banks' bank?

Describe the significance of IMF quotas.

Explain a future contract.

Which of the following is the reserve currency used by the IMF?

What is the basic code of conduct that member nations are obligated to follow upon joining the IMF?

Which of the following organizations issues bank notes and coins and regulates the quantity of money in circulation?

Only members of the IMF can become members of the World Bank.

Which of the following is true of the IMF's credit tranche?

One of the major reform measures of the Basel III is to improve risk management and governance of the banking system.

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

The Multinational Enterprise

Foreign Investment

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Exam 6: Money and Banking

Bank deposits made by individuals cannot be commingled by the bank for its own use.

Which of the following describes a currency basket in monetary transaction?

Which of the following terms refers to the nearly simultaneous purchase of a commodity (such as a currency) in one market and its sale in another to profit from the price differential?

The principle that an obligation to pay a particular sum of money is fixed and does not change even if the purchasing power or foreign exchange rate of the money does change is known as ________.

The IMF Agreement grants to the ________ of the Fund the authority to interpret the provisions of the Agreement.

The IMF was created immediately after the collapse of the gold standard system.

All the shares of the Bank for International Settlements are owned by the World Bank and the IMF.

The Concessional IMF Facility is designed ________.

IMF's Articles of Agreement establishes ________.

Which of the following is the most commonly used short-term liquid instrument for trading in the interbank market?

How does a bank transfer money internationally?

Explain the role of the Bank for International Settlements as the central banks' bank?

Describe the significance of IMF quotas.

Explain a future contract.

Which of the following is the reserve currency used by the IMF?

What is the basic code of conduct that member nations are obligated to follow upon joining the IMF?

Which of the following organizations issues bank notes and coins and regulates the quantity of money in circulation?

Only members of the IMF can become members of the World Bank.

Which of the following is true of the IMF's credit tranche?

One of the major reform measures of the Basel III is to improve risk management and governance of the banking system.

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

The Multinational Enterprise

Foreign Investment

Trade in Goods

Services and Labor

Intellectual Property

Sales

Transportation

Financing

Filters