Exam2 - FC4 - The flashcards are formatted for printing....

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Money Money
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Pieces of paper that we decided to trust; without trust, they’re not worth anything. Don’t have to accept it (i.e. it’s difficult to sell $100 bill for $20, because people won’t trust you).
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Money Electronic Money
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Blips on a screen rather than pieces of paper, but still dependent on trust. How much it’s worth is how much you trust it (i.e. Confederate dollar is just pretty paper because the government backing it dissolved.
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Bretton Woods System Gold Coin Standards
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Just another value system based on a rare commodity. The US dollar is fixed to gold, other nations’ currency are fixed to the US dollar; set up IMP and IBRD (after WWII).
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Nixon IBRD
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Hold currencies, maintain ratios, and make loans; now the World Bank. Eliminated the gold standard because of the expensive Vietnam war.
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IMF Money
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Today, how strong it is based on how much the government can protect it; strong military (when shit hits the fan, who do we trust most?). Their purpose is to make the international currency system work.
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International Monetary Fund IMF
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rate stability; because it’s a system based on trust, they stabilize world currency against the US dollar. i.e. IMF
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This note was uploaded on 09/08/2011 for the course GEB 3375H taught by Professor Robertsweo during the Spring '11 term at University of Central Florida.

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Exam2 - FC4 - The flashcards are formatted for printing....

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