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institutions al created to assist nations in becoming and remaining economically viable. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Easy Learning Objective: 02-07 The emergence of the International Monetary Fund and the World Bank Group Topic: The International Monetary Fund and World Bank Group 87. (p. 47) To overcome the particular market barriers of inadequate monetary reserves and unstable currencies that plagued international trading before World War II, the _____ was formed. A. World Bank B. United Nations Organization C. International Trade Federation D. International Monetary Fund E. United Nations Development Programme Inadequate monetary reserves and unstable currencies are particularly vexing problems in global trade. So long as these conditions exist, world markets cannot develop and function as effectively as they should. To overcome these particular market barriers that plagued international trading before World War II, the International Monetary Fund (IMF) was formed. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 02-07 The emergence of the International Monetary Fund and the World Bank Group Topic: The International Monetary Fund and World Bank Group 2-44 Chapter 02 - The Dynamic Environment of International Trade 88. (p. 47) Which of the following is one of the primary objectives of the International Monetary Fund (IMF)? A. The abolishment of unfavorable exchange rates for any nation. B. The abolishment of debt for impoverished nations. C. The stabilization foreign of exchange rates. D. The waiver of all debts from World War II. E. The establishment of global nondiscriminatory prices. Among the objectives of the IMF are the stabilization of foreign exchange rates and the establishment of freely convertible currencies to facilitate the expansion and balanced growth of international trade. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 02-07 The emergence of the International Monetary Fund and the World Bank Group Topic: The International Monetary Fund and World Bank Group 89. (p. 47) Developed by the IMF to cope with universally floating exchange rates, _____ represent(s) an average base of value derived from the value of a group of major currencies. A. exchange permits B. special drawing rights C. floating currencies D. the gold rate E. dollar parities Developed by the IMF to cope with universally floating exchange rates, special drawing rights (SDRs) represents an average base of value derived from the value of a group of major currencies. AACSB: Analytic Bloom's: Knowledge Difficulty Level: Medium Learning Objective: 02-07 The emergence of the International Monetary Fund and the World Bank Group Topic: The International Monetary Fund and World Bank Group 2-45 Chapter 02 - The Dynamic Environment of International Trade 90. (p. 47) Another term for IMF special drawing rights (SDRs) is: A. black gold. B. exchange permits. C. floating currencies. D. paper gold. E. virtual dollars. The SDR is in effect "paper gold"... View Full Document

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