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

Which agreement resulted in each country adopting its own exchange rate system?

What decision was made at the Smithsonian Conference in 1971?

London became a major international financial center under the gold standard because of the international trust in the British currency.

Under the Jamaica Agreement ________.

All of the following are typical long-term portfolio investments included in the capital account except ________.

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?

What is an SDR? How are SDRs used?

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 ________.

The International Finance Corporation is charged with promoting the development of the private sector in developing countries.

Which term refers to linking a currency value to the value of gold?

When the gold standard ended ________.

Special drawing rights, SDRs, are sometimes called ________.

The World Bank and the International Monetary Fund were created as part of the ________.

The initial goal of the World Bank was to help finance the reconstruction of Europe.

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

Why did many countries prefer to be paid in currency rather than in gold during the gold standard?

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 ________.

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

A country can borrow up to ________ percent of its quota from the IMF?

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