Question 1

The World Bank is the world's oldest international organization involved in monetary cooperation.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the use of the IMF's SDR in international transactions?

Accepted Answer

The SDR is an international reserve asse

Question 3

The value of official money is nominally constant.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following describes a spot contract?

Accepted Answer

A)  a contract that creates the right-but not the obligation-to buy or sell a specific amount of a commodity at a fixed price within an agreed-upon period of time 
B)  a contract in which a commodity is presently sold and the price is presently paid but delivery is, by agreement, delayed to a later date 
C)  a contract for the immediate sale and delivery of a commodity, such as a currency 
D)  a promise to buy or sell a commodity for a specified price, with both delivery and payment to be made at a specified future date 
A)  a contract that creates the right-but not the obligation-to buy or sell a specific amount of a commodity at a fixed price within an agreed-upon period of time 
B)  a contract in which a commodity is presently sold and the price is presently paid but delivery is, by agreement, delayed to a later date 
C)  a contract for the immediate sale and delivery of a commodity, such as a currency 
D)  a promise to buy or sell a commodity for a specified price, with both delivery and payment to be made at a specified future date

Question 5

The IMF forbids member states from imposing restrictions on the payments or transfers involving current international transactions.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following was the major change made in the Second Amendment to the IMF's Articles of Agreement in 1976?

Accepted Answer

A)  It allows members to define the value of their currency by any criteria except gold. 
B)  It implements the U.S. dollar as its international reserve currency. 
C)  It establishes the IMF's SDR as an international currency. 
D)  It prohibits members from pegging their currency to a currency basket. 
A)  It allows members to define the value of their currency by any criteria except gold. 
B)  It implements the U.S. dollar as its international reserve currency. 
C)  It establishes the IMF's SDR as an international currency. 
D)  It prohibits members from pegging their currency to a currency basket.

Question 7

Describe the standby arrangement facility provided by the IMF.

Accepted Answer

Standby arrangements are designed to hel

Question 8

The currency exchange system established by the IMF at its inception was known as the gold bullion standard.

Accepted Answer

A) True 
 B)False

Question 9

Reserve currency can consist of any commodity that is easily transferable and reasonably nonspoilable.

Accepted Answer

A) True 
 B)False

Question 10

Accounts in domestic banks that are maintained and paid in a foreign currency are commonly free of the monetary control restrictions imposed by their issuing country.

Accepted Answer

A) True 
 B)False

Question 11

Explain the IMF's "conditionality" requirement.

Accepted Answer

The use of IMF's resources is limited by

Question 12

The president of the Bank for International Settlements nominates its general manager.

Accepted Answer

A) True 
 B)False

Question 13

According to the par value system, every member of the IMF, on joining the Fund, ________.

Accepted Answer

A)  had to implement the U.S. dollar as its international reserve currency 
B)  had to adopt the gold exchange rate system of monetary exchange 
C)  had to declare a value at which its currency could be converted into gold 
D)  had to define the value of their currency by any criteria except gold 
A)  had to implement the U.S. dollar as its international reserve currency 
B)  had to adopt the gold exchange rate system of monetary exchange 
C)  had to declare a value at which its currency could be converted into gold 
D)  had to define the value of their currency by any criteria except gold

Question 14

An IMF member is entitled to two credit tranches, each equivalent to 50 percent of its quota.

Accepted Answer

A) True 
 B)False

Question 15

Only countries that are parties to the Climate Change Convention or the ________ are eligible to receive funds from the Global Environment Facility (GEF).

Accepted Answer

A)  Basel Convention 
B)  Convention on Biological Diversity 
C)  Kyoto Protocol 
D)  Bretton Woods Conference 
A)  Basel Convention 
B)  Convention on Biological Diversity 
C)  Kyoto Protocol 
D)  Bretton Woods Conference

Question 16

Which of the following sections of the IMF Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of current transactions?

Accepted Answer

A)  Section 2(a) of Article VIII 
B)  Section 2(b) of Article VIII 
C)  Section 5 of Article VIII 
D)  Section 4 of Article VIII 
A)  Section 2(a) of Article VIII 
B)  Section 2(b) of Article VIII 
C)  Section 5 of Article VIII 
D)  Section 4 of Article VIII

Question 17

The gold standard differed from the gold bullion standard in that the gold standard ________.

Accepted Answer

A)  used gold coins of standard specification 
B)  was highly liquid 
C)  backed paper currency with gold bullions 
D)  did not use minted gold coins 
A)  used gold coins of standard specification 
B)  was highly liquid 
C)  backed paper currency with gold bullions 
D)  did not use minted gold coins

Question 18

A(n) ________ clause is a contractual provision that says that the price will be adjusted according to the inflation rate.

Accepted Answer

A)  stabilization 
B)  indemnification 
C)  force majeure 
D)  maintenance of value 
A)  stabilization 
B)  indemnification 
C)  force majeure 
D)  maintenance of value

Question 19

The first modern international monetary system was the Special Drawing Right of the IMF.

Accepted Answer

A) True 
 B)False

Question 20

What are the different types of monies that are required in an international transaction?

Accepted Answer

In international transactions, the parti

The World Bank is the world's oldest international organization involved in monetary cooperation.

Discuss the use of the IMF's SDR in international transactions?

The value of official money is nominally constant.

Which of the following describes a spot contract?

The IMF forbids member states from imposing restrictions on the payments or transfers involving current international transactions.

Which of the following was the major change made in the Second Amendment to the IMF's Articles of Agreement in 1976?

Describe the standby arrangement facility provided by the IMF.

The currency exchange system established by the IMF at its inception was known as the gold bullion standard.

Reserve currency can consist of any commodity that is easily transferable and reasonably nonspoilable.

Accounts in domestic banks that are maintained and paid in a foreign currency are commonly free of the monetary control restrictions imposed by their issuing country.

Explain the IMF's "conditionality" requirement.

The president of the Bank for International Settlements nominates its general manager.

According to the par value system, every member of the IMF, on joining the Fund, ________.

An IMF member is entitled to two credit tranches, each equivalent to 50 percent of its quota.

Only countries that are parties to the Climate Change Convention or the ________ are eligible to receive funds from the Global Environment Facility (GEF).

Which of the following sections of the IMF Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of current transactions?

The gold standard differed from the gold bullion standard in that the gold standard ________.

A(n) ________ clause is a contractual provision that says that the price will be adjusted according to the inflation rate.

The first modern international monetary system was the Special Drawing Right of the IMF.

What are the different types of monies that are required in an international transaction?

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

The World Bank is the world's oldest international organization involved in monetary cooperation.

Discuss the use of the IMF's SDR in international transactions?

The value of official money is nominally constant.

Which of the following describes a spot contract?

The IMF forbids member states from imposing restrictions on the payments or transfers involving current international transactions.

Which of the following was the major change made in the Second Amendment to the IMF's Articles of Agreement in 1976?

Describe the standby arrangement facility provided by the IMF.

The currency exchange system established by the IMF at its inception was known as the gold bullion standard.

Reserve currency can consist of any commodity that is easily transferable and reasonably nonspoilable.

Accounts in domestic banks that are maintained and paid in a foreign currency are commonly free of the monetary control restrictions imposed by their issuing country.

Explain the IMF's "conditionality" requirement.

The president of the Bank for International Settlements nominates its general manager.

According to the par value system, every member of the IMF, on joining the Fund, ________.

An IMF member is entitled to two credit tranches, each equivalent to 50 percent of its quota.

Only countries that are parties to the Climate Change Convention or the ________ are eligible to receive funds from the Global Environment Facility (GEF).

Which of the following sections of the IMF Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of current transactions?

The gold standard differed from the gold bullion standard in that the gold standard ________.

A(n) ________ clause is a contractual provision that says that the price will be adjusted according to the inflation rate.

The first modern international monetary system was the Special Drawing Right of the IMF.

What are the different types of monies that are required in an international transaction?

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