Answer true 24 to provide funding for countries

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International Financial Management
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Chapter 8 / Exercise 19
International Financial Management
Madura
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Answer: TRUE
24) To provide funding for countries' efforts toward economic development, the Bretton Woods Agreement created the International Bank for Reconstruction and Development.
25) The IMF asset whose value is based on a "weighted basket" of four currencies is called a special drawing right.
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Chapter 8 / Exercise 19
International Financial Management
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26) Today's international monetary system remains in large part a managed float system.
27) A government with a currency board is legally bound to hold an amount of foreign currency that is at least equal to the amount of domestic currency.
28) The European monetary system is still in practice today.
29) When a country's currency is weak, the price of its ________. C
30) A company selling in a country with a strong currency while sourcing from a country with a weak currency ________. D
31) Which of the following is the intentional lowering of a currency's value by its government? A) revaluation B) devaluation C) currency hedging D) currency arbitrage Answer: B
32) Devaluation of a nation's currency ________. C
33) The intentional raising of the value of a currency by a nation's government is called ________.
A
34) Which of the following lowers the price of a country's exports on world markets and increases the price of its imports? B
35) Predictable exchange rates reduce the need for ________. A) currency conversion B) currency swap C) currency depreciation D) currency hedging Answer: D
36) Which of the following stipulates that an identical product must have an identical price in all countries when the price is expressed in a common currency? B

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