Business

How does the International Monetary Fund (IMF) provide loans to defici

QUESTION How does the International Monetary Fund (IMF) provide loans to deficit-laden countries? A. It prints the required currencies, thereby increasing money supply in those countries. B. It acts as a market, buying goods from these countries and selling them to developed countries. C. A pool of gold and currencies contributed by its members provides […]

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Date: September 3rd, 2020

Which of the following is a reason for the emergence of the gold stand

QUESTION Which of the following is a reason for the emergence of the gold standard? A. Expansion in the volume of international trade due to the Industrial Revolution B. Inability of governments to convert gold into paper currency on demand at a fixed rate C. Widening gap between the developed and the developing nations D. […]

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Date: September 3rd, 2020

Which term was not defined in the International Monetary Fund’s Articl

QUESTION Which term was not defined in the International Monetary Fund’s Articles of Agreement but was intended to apply to countries that had suffered permanent adverse shifts in the demand for their products? A. Competitive disadvantage B. Capital flight C. Fundamental disequilibrium D. Break-even point E. Diseconomies of scale   ANSWER C

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Date: September 3rd, 2020

Which of the following statements is true about the gold standard? A.

QUESTION Which of the following statements is true about the gold standard? A. Given a common gold standard, the value of any currency in units of any other currency was easy to determine. B. Establishing a gold standard seemed impractical as the volume of international trade expanded in the wake of the Industrial Revolution. C. […]

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Date: September 3rd, 2020

Which of the following observations about the International Developmen

QUESTION Which of the following observations about the International Development Association (IDA) scheme of the World Bank is true? A. Money is raised through bond sales in the international capital market. B. Borrowers have up to 50 years to repay at an interest rate of less than 1 percent a year. C. IDA loans go […]

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Date: September 3rd, 2020

Which of the following was a reason that led to the collapse of the go

QUESTION Which of the following was a reason that led to the collapse of the gold standard in 1939? A. Difficulty and complexity in using the gold standard to determine the exchange rate B. Agreement by governments to convert paper currency into gold on demand at a fixed rate C. A cycle of competitive currency […]

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Date: September 3rd, 2020

Argonia Republic is in trade surplus with Kamboly. Under the gold stan

QUESTION Argonia Republic is in trade surplus with Kamboly. Under the gold standard, which of the following statements is true until a balance-of-trade equilibrium is achieved? A. There will be a net flow of gold from Argonia Republic to Kamboly. B. The money supply in Kamboly will be reduced due to the flow of gold […]

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Date: September 3rd, 2020

Which of the following refers to a system under which the exchange rat

QUESTION Which of the following refers to a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand? A. Fixed exchange rate B. Floating exchange rate C. Forward exchange rate D. Pegged exchange rate E. Nominal exchange rate   ANSWER B

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Date: September 3rd, 2020