Criticism of IMF and Its Role in Global Financial Crisis Quiz

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What is one of the criticisms free-market economists have towards the IMF?

Structural adjustment programs are natural and beneficial for economic development.

Structural adjustment programs undermine market responsiveness. (correct)

Structural adjustment programs promote an entrepreneurial culture.

Structural adjustment programs have no impact on the economy.

How was the IMF criticized in the aftermath of the 2007–9 global financial crisis?

For promoting entrepreneurship in developing countries.

For preventing the crisis effectively.

For highlighting the instabilities and imbalances that led to the crisis.

For failing to prevent the crisis by identifying its causes. (correct)

What was one of the calls for reforming the IMF after the global financial crisis?

To strengthen its ability to regulate the global financial system. (correct)

To prioritize neoliberal ideology over other economic theories.

To increase funding to developing countries.

To diminish the influence of developing states.

What distinguishes the World Bank from the IMF in terms of their primary function?

The IMF has a redistributive function. Signup and view all the answers

What do the IMF and World Bank have in common?

They were both created by the Washington Consensus. Signup and view all the answers

Why were developing states favored in minor adjustments to the IMF?

To strengthen their voting rights within the organization. Signup and view all the answers

What bodies formed the basis of the Bretton Woods system?

International Monetary Fund, World Bank, and General Agreement on Tariffs and Trade Signup and view all the answers

Which organization replaced the General Agreement on Tariffs and Trade in 1995?

World Trade Organization Signup and view all the answers

What led to the breakdown of the Bretton Woods system in the early 1970s?

Floating exchange rates replacing fixed exchange rates Signup and view all the answers

Critics of the IMF, World Bank, and WTO argue that they have deepened global disparities by:

Helping to produce an unstable financial order Signup and view all the answers

The global financial crisis of 2007–9 and the global coronavirus pandemic raised concerns about the effectiveness of:

Global economic governance Signup and view all the answers

The rise of the BRICS nations suggests possible alternative models for the future of:

Global governance Signup and view all the answers

What was the main responsibility of the International Bank for Reconstruction and Development (IBRD), also known as the World Bank?

Providing loans for reconstruction and development Signup and view all the answers

Which organization replaced the General Agreement on Tariffs and Trade (GATT) in 1995?

World Trade Organization (WTO) Signup and view all the answers

What was the primary function of the International Monetary Fund (IMF) within the Bretton Woods system?

Promoting international financial order Signup and view all the answers

What was the relationship between the US dollar and gold according to the Bretton Woods system?

US dollar was convertible to gold at a rate of $35 per ounce Signup and view all the answers

Which organization focused on maintaining stable exchange rates by fixing currencies to the value of the US dollar?

International Monetary Fund (IMF) Signup and view all the answers

What was the primary goal of the General Agreement on Tariffs and Trade (GATT) within the Bretton Woods system?

Advancing free trade by reducing tariff levels Signup and view all the answers

Criticism of IMF and Its Role in Global Financial Crisis Quiz

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