Question 1

Which of the following is true of a futures contract?

Accepted Answer

A)  They are not standardized contracts. 
B)  They are transferable contracts. 
C)  They require immediate delivery of the commodity. 
D)  They require immediate payment of the price. 
A)  They are not standardized contracts. 
B)  They are transferable contracts. 
C)  They require immediate delivery of the commodity. 
D)  They require immediate payment of the price.

Question 2

The IMF's unit of account is the SDR.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the way in which the IMF's SDR helps in controlling currency fluctuation?

Accepted Answer

A)  by acting as a basket currency in foreign exchange transactions 
B)  by substituting as an international currency 
C)  by imposing nonconvertibility from currency to gold and vice versa 
D)  by allowing a currency's value to fluctuate according to the foreign exchange market 
A)  by acting as a basket currency in foreign exchange transactions 
B)  by substituting as an international currency 
C)  by imposing nonconvertibility from currency to gold and vice versa 
D)  by allowing a currency's value to fluctuate according to the foreign exchange market

Question 4

According to economist John Maynard Keynes and U.S. Treasury official Harry Dexter White, which of the following was one of the conditions that had helped to produce and prolong the Great Depression of the 1930s?

Accepted Answer

A)  the shortage of production of gold in the U.S. 
B)  the lack of a standard for determining the value of national currencies 
C)  the dereliction of the code of conduct by IMF member states 
D)  the lack of demand for the gold in national treasuries 
A)  the shortage of production of gold in the U.S. 
B)  the lack of a standard for determining the value of national currencies 
C)  the dereliction of the code of conduct by IMF member states 
D)  the lack of demand for the gold in national treasuries

Question 5

A(n) ________ is a promissory note issued by a bank in which the bank promises to repay money it has received, plus interest, at a certain time.

Accepted Answer

A)  letter of credit 
B)  certificate of deposit 
C)  option contract 
D)  allonge 
A)  letter of credit 
B)  certificate of deposit 
C)  option contract 
D)  allonge

Question 6

A member state obligates itself upon joining the IMF to observe a code of conduct.

Accepted Answer

A) True 
 B)False

Question 7

During 1945, the IMF's par value system of currency exchange allowed members to define the value of their currency by any criteria except gold.

Accepted Answer

A) True 
 B)False

Question 8

The holder of an option contract is obligated to complete its transaction within the stipulated time.

Accepted Answer

A) True 
 B)False

Question 9

In which of the following contracts is the delivery delayed, though the commodity is sold and paid for?

Accepted Answer

A)  a forward contract 
B)  an option contract 
C)  a spot contract 
D)  a future contract 
A)  a forward contract 
B)  an option contract 
C)  a spot contract 
D)  a future contract

Question 10

The ________ is the money used to define the amount of an obligation.

Accepted Answer

A)  money of payment 
B)  money of account 
C)  book value 
D)  par value 
A)  money of payment 
B)  money of account 
C)  book value 
D)  par value

Question 11

Which of the following is a principal argument against the enforcement of Article VIII, Section 2(b), of the IMF's Articles of Agreement?

Accepted Answer

A)  that it depends unduly on the gold exchange rate system of monetary exchange 
B)  that it places a lot of importance on the gold reserves that a country owns 
C)  that it downplays the importance of interdependence of member nations 
D)  that it is at odds with a longstanding choice of law rule 
A)  that it depends unduly on the gold exchange rate system of monetary exchange 
B)  that it places a lot of importance on the gold reserves that a country owns 
C)  that it downplays the importance of interdependence of member nations 
D)  that it is at odds with a longstanding choice of law rule

Question 12

The World Bank decides what projects are to be funded by the Global Environment Facility.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following IMF facilities essentially acts as bridging loans provided to member states while the IMF deliberates about whether to provide other funds to the particular member state?

Accepted Answer

A)  the Concessional IMF Facility 
B)  the Standby Arrangement 
C)  the reserve tranche 
D)  the credit tranche 
A)  the Concessional IMF Facility 
B)  the Standby Arrangement 
C)  the reserve tranche 
D)  the credit tranche

Question 14

The American interpretation of the term "exchange contracts" excludes securities contracts.

Accepted Answer

A) True 
 B)False

Question 15

Private money differs from official money in that private money ________.

Accepted Answer

A)  cannot be used to pay debts 
B)  is exclusively used by the government 
C)  cannot be lent to private individuals 
D)  can also consist of stocks of rare metal 
A)  cannot be used to pay debts 
B)  is exclusively used by the government 
C)  cannot be lent to private individuals 
D)  can also consist of stocks of rare metal

Question 16

The IMF's 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) True 
 B)False

Question 17

A(n) ________ contract 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.

Accepted Answer

A)  forward 
B)  spot 
C)  future 
D)  option 
A)  forward 
B)  spot 
C)  future 
D)  option

Question 18

Which of the following is true of the IMF's SDR?

Accepted Answer

A)  It cannot be added to the member states' foreign currency. 
B)  Its value is set daily using a set of four major currencies. 
C)  All the four currencies are given equal weight while determining the value of the SDR. 
D)  One of the currencies used for calculating the value of SDR is Russian Ruble. 
A)  It cannot be added to the member states' foreign currency. 
B)  Its value is set daily using a set of four major currencies. 
C)  All the four currencies are given equal weight while determining the value of the SDR. 
D)  One of the currencies used for calculating the value of SDR is Russian Ruble.

Which of the following is true of a futures contract?

The IMF's unit of account is the SDR.

Which of the following is the way in which the IMF's SDR helps in controlling currency fluctuation?

According to economist John Maynard Keynes and U.S. Treasury official Harry Dexter White, which of the following was one of the conditions that had helped to produce and prolong the Great Depression of the 1930s?

A(n) ________ is a promissory note issued by a bank in which the bank promises to repay money it has received, plus interest, at a certain time.

A member state obligates itself upon joining the IMF to observe a code of conduct.

During 1945, the IMF's par value system of currency exchange allowed members to define the value of their currency by any criteria except gold.

The holder of an option contract is obligated to complete its transaction within the stipulated time.

In which of the following contracts is the delivery delayed, though the commodity is sold and paid for?

The ________ is the money used to define the amount of an obligation.

Which of the following is a principal argument against the enforcement of Article VIII, Section 2(b), of the IMF's Articles of Agreement?

The World Bank decides what projects are to be funded by the Global Environment Facility.

Which of the following IMF facilities essentially acts as bridging loans provided to member states while the IMF deliberates about whether to provide other funds to the particular member state?

The American interpretation of the term "exchange contracts" excludes securities contracts.

Private money differs from official money in that private money ________.

The IMF's Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of "current transactions."

A(n) ________ contract 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.

Which of the following is true of the IMF's SDR?

Introduction to International and Comparative Law

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Exam 6: Money and Banking

Which of the following is true of a futures contract?

The IMF's unit of account is the SDR.

Which of the following is the way in which the IMF's SDR helps in controlling currency fluctuation?

According to economist John Maynard Keynes and U.S. Treasury official Harry Dexter White, which of the following was one of the conditions that had helped to produce and prolong the Great Depression of the 1930s?

A(n) ________ is a promissory note issued by a bank in which the bank promises to repay money it has received, plus interest, at a certain time.

A member state obligates itself upon joining the IMF to observe a code of conduct.

During 1945, the IMF's par value system of currency exchange allowed members to define the value of their currency by any criteria except gold.

The holder of an option contract is obligated to complete its transaction within the stipulated time.

In which of the following contracts is the delivery delayed, though the commodity is sold and paid for?

The ________ is the money used to define the amount of an obligation.

Which of the following is a principal argument against the enforcement of Article VIII, Section 2(b), of the IMF's Articles of Agreement?

The World Bank decides what projects are to be funded by the Global Environment Facility.

Which of the following IMF facilities essentially acts as bridging loans provided to member states while the IMF deliberates about whether to provide other funds to the particular member state?

The American interpretation of the term "exchange contracts" excludes securities contracts.

Private money differs from official money in that private money ________.

The IMF's Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of "current transactions."

A(n) ________ contract 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.

Which of the following is true of the IMF's SDR?

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