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

What resulted from the Smithsonian Conference?

The International Bank for Reconstruction and Development is also known as the ________.

Describe the major outcomes of the Bretton Woods conference.

How would you record earnings of a Pakistani-born resident of Kuwait that are sent home to relatives in the balance of payments?

Under the gold standard, when the United States and the United Kingdom exchanged their currencies at a rate of the $20.67/₤£4.247, the exchange rate was a ________.

Which country holds the largest bloc of votes in the World Bank?

Which currency played a central role in the Bretton Woods system?

A managed float differs from a dirty float because under a managed float exchange rates move as a result of central bank intervention and supply and demand, while a dirty float involves black market intervention.

Between 1821 and 1918, why was the international monetary system also known as the sterling-based gold standard?

Under a managed float ________.

Country X, a member of the IMF, needs to borrow money from the IMF. The IMF has agreed to the loan if Country X agrees to close insolvent merchant banks and lower tariffs on many goods. Which term refers to the restrictions imposed on the loan?

Why was the gold standard suspended during World War I?

What term recognizes that in addition to private sector market forces, exchange rates are also affected by central banks buying or selling currencies on the foreign-exchange market?

The ________ establishes the rules by which countries value and exchange their currencies.

What is the primary purpose of the Multilateral Investment Guarantee Agency?

What is the official settlements balance?

Special drawing rights, SDRs, are sometimes called ________.

The ________ shows the difference between a country's exports of services and its imports of services.

What was the Triffin Paradox?

The international monetary system provides a mechanism for ________.