Question 1

Why is quota size an important membership issue for the IMF? Do you think this is a fair system? Why or why not?

Accepted Answer

The country's quota determines its votin

Question 2

The BOP is a useful tool for detecting signs of trouble that could lead to governmental trade restrictions.

Accepted Answer

A) True 
 B)False

Question 3

Country X has requested and received a loan from the World Bank. Country X may not use the money to finance ________.

Accepted Answer

A)  new railroads 
B)  harbor facilities 
C)  national highways 
D)  trade deficits 
A)  new railroads 
B)  harbor facilities 
C)  national highways 
D)  trade deficits

Question 4

A convertible currency is one that can be freely exchanged for other currencies without legal restrictions.

Accepted Answer

A) True 
 B)False

Question 5

Why does the international monetary system exist?

Accepted Answer

A)  because most countries have their own currencies 
B)  to control interest rates on international business loans 
C)  to avoid monetary crises from becoming global 
D)  because it sets the price of a given currency 
A)  because most countries have their own currencies 
B)  to control interest rates on international business loans 
C)  to avoid monetary crises from becoming global 
D)  because it sets the price of a given currency

Question 6

Which of the following is a form of asset included in the official reserves account?

Accepted Answer

A)  government bonds 
B)  inconvertible currencies 
C)  special drawing rights 
D)  reserve positions at the WTO 
A)  government bonds 
B)  inconvertible currencies 
C)  special drawing rights 
D)  reserve positions at the WTO

Question 7

What is the difference between a country's export of services and its imports of services?

Accepted Answer

The differ

Question 8

The leader of Country X has decided that the nation should join the IMF and has agreed to the rules and regulations of the IMF. Now Country X must ________.

Accepted Answer

A)  pay a quota to the IMF 
B)  locate a sponsoring IMF country 
C)  pay each of the IMF members an entrance fee 
D)  agree to an IMF investigation of government spending 
A)  pay a quota to the IMF 
B)  locate a sponsoring IMF country 
C)  pay each of the IMF members an entrance fee 
D)  agree to an IMF investigation of government spending

Question 9

What are the roles of the international monetary system and balance of payments accounting system in the promotion of international trade and FDI?

Accepted Answer

The international monetary system establ

Question 10

Do you think the breakdown of the international monetary system and international trade after World War I influenced the occurrence of World War II? Why or why not?

Accepted Answer

It created inflation and unemp

Question 11

What was the Brady Plan?

Accepted Answer

The Brady Plan, which came about during

Question 12

Which of the following was created by the Bretton Woods Agreement to facilitate the expansion and balanced growth of international trade and to promote exchange stability?

Accepted Answer

A)  World Bank 
B)  Inter-American Development Bank 
C)  International Monetary Fund 
D)  Multilateral Investment Guarantee Agency 
A)  World Bank 
B)  Inter-American Development Bank 
C)  International Monetary Fund 
D)  Multilateral Investment Guarantee Agency

Question 13

The international monetary system provides a means of exchanging currencies in international business transactions.

Accepted Answer

A) True 
 B)False

Question 14

Gold was used as a medium of international exchange in ancient times because of its strength and value.

Accepted Answer

A) True 
 B)False

Question 15

The country members of the World Bank each have one equal vote in decisions.

Accepted Answer

A) True 
 B)False

Question 16

The Bank of England no longer redeemed British paper currency for gold at par value ________.

Accepted Answer

A)  in the 1920s 
B)  in the 1850s 
C)  before 1821 
D)  after 1931 
A)  in the 1920s 
B)  in the 1850s 
C)  before 1821 
D)  after 1931

Question 17

AeroTech, a German firm, deposits a check in a U.S. bank. The deposit will be recorded as a ________.

Accepted Answer

A)  capital outflow in the U.S. BOP 
B)  capital inflow in the U.S. BOP 
C)  unilateral debit in the United States 
D)  credit to Germany's BOP 
A)  capital outflow in the U.S. BOP 
B)  capital inflow in the U.S. BOP 
C)  unilateral debit in the United States 
D)  credit to Germany's BOP

Question 18

Dirty float is another term for ________.

Accepted Answer

A)  flexible float 
B)  managed float 
C)  illegal exchange 
D)  convertible currency 
A)  flexible float 
B)  managed float 
C)  illegal exchange 
D)  convertible currency

Question 19

What guidelines must the World Bank follow in making loans? Discuss at least three of these guidelines and explain whether you believe these guidelines are appropriate.

Accepted Answer

The World Bank must lend for productive

Question 20

A ________ refers to the official price of a currency in terms of gold.

Accepted Answer

A)  fixed exchange rate 
B)  pegged rate 
C)  par value 
D)  currency rate 
A)  fixed exchange rate 
B)  pegged rate 
C)  par value 
D)  currency rate

Why is quota size an important membership issue for the IMF? Do you think this is a fair system? Why or why not?

The BOP is a useful tool for detecting signs of trouble that could lead to governmental trade restrictions.

Country X has requested and received a loan from the World Bank. Country X may not use the money to finance ________.

A convertible currency is one that can be freely exchanged for other currencies without legal restrictions.

Why does the international monetary system exist?

Which of the following is a form of asset included in the official reserves account?

What is the difference between a country's export of services and its imports of services?

The leader of Country X has decided that the nation should join the IMF and has agreed to the rules and regulations of the IMF. Now Country X must ________.

What are the roles of the international monetary system and balance of payments accounting system in the promotion of international trade and FDI?

Do you think the breakdown of the international monetary system and international trade after World War I influenced the occurrence of World War II? Why or why not?

What was the Brady Plan?

Which of the following was created by the Bretton Woods Agreement to facilitate the expansion and balanced growth of international trade and to promote exchange stability?

The international monetary system provides a means of exchanging currencies in international business transactions.

Gold was used as a medium of international exchange in ancient times because of its strength and value.

The country members of the World Bank each have one equal vote in decisions.

The Bank of England no longer redeemed British paper currency for gold at par value ________.

AeroTech, a German firm, deposits a check in a U.S. bank. The deposit will be recorded as a ________.

Dirty float is another term for ________.

What guidelines must the World Bank follow in making loans? Discuss at least three of these guidelines and explain whether you believe these guidelines are appropriate.

A ________ refers to the official price of a currency in terms of gold.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

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Exam 7: The International Monetary System and the Balance of Payments

Why is quota size an important membership issue for the IMF? Do you think this is a fair system? Why or why not?

The BOP is a useful tool for detecting signs of trouble that could lead to governmental trade restrictions.

Country X has requested and received a loan from the World Bank. Country X may not use the money to finance ________.

A convertible currency is one that can be freely exchanged for other currencies without legal restrictions.

Why does the international monetary system exist?

Which of the following is a form of asset included in the official reserves account?

What is the difference between a country's export of services and its imports of services?

The leader of Country X has decided that the nation should join the IMF and has agreed to the rules and regulations of the IMF. Now Country X must ________.

What are the roles of the international monetary system and balance of payments accounting system in the promotion of international trade and FDI?

Do you think the breakdown of the international monetary system and international trade after World War I influenced the occurrence of World War II? Why or why not?

What was the Brady Plan?

Which of the following was created by the Bretton Woods Agreement to facilitate the expansion and balanced growth of international trade and to promote exchange stability?

The international monetary system provides a means of exchanging currencies in international business transactions.

Gold was used as a medium of international exchange in ancient times because of its strength and value.

The country members of the World Bank each have one equal vote in decisions.

The Bank of England no longer redeemed British paper currency for gold at par value ________.

AeroTech, a German firm, deposits a check in a U.S. bank. The deposit will be recorded as a ________.

Dirty float is another term for ________.

What guidelines must the World Bank follow in making loans? Discuss at least three of these guidelines and explain whether you believe these guidelines are appropriate.

A ________ refers to the official price of a currency in terms of gold.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters