Globalization of Finance and Its Impact on National Policy Autonomy Quiz
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Questions and Answers

What is the 'impossible trinity' in financial globalization?

  • Maintaining monetary policy autonomy, restricted capital mobility, and fixed exchange rates
  • Maintaining national policy autonomy, restricted capital mobility, and stable exchange rates
  • Maintaining national policy autonomy, global capital mobility, and fixed exchange rates
  • Maintaining monetary policy autonomy, cross-border capital mobility, and stable exchange rates (correct)

    • What was the reason behind the US decision to suspend the dollar's convertibility into gold in 1971?

  • Growing problem of confidence faced by the dollar (correct)
  • Pressure from other countries to end the gold standard
  • Decrease in the value of gold
  • Increase in the value of the US dollar

    • What is the purpose of IMF 'conditionality'?

  • To limit the country's policy autonomy
  • To force the country to adopt policies that align with IMF's interests
  • To provide financial aid without any strings attached
  • To ensure that the country will be able to repay the IMF (correct)

    • What is the significance of sovereign wealth funds?

    <p>They blur the line between the state and the market</p> Signup and view all the answers

    What is the managed floating exchange rate system?

    <p>A middle ground between the floating system and the fixed system</p> Signup and view all the answers

    What is the 'impossible trinity' in relation to financial globalization?

    <p>Maintaining monetary policy autonomy, cross-border capital mobility, and stable exchange rates</p> Signup and view all the answers

    What was the reason behind the collapse of the gold exchange standard in 1971?

    <p>Growing problem of confidence faced by the dollar</p> Signup and view all the answers

    What is the purpose of IMF 'conditionality'?

    <p>To promote national ownership of strong and effective policies</p> Signup and view all the answers

    What is the significance of sovereign wealth funds in financial globalization?

    <p>They blur the line between the state and the market</p> Signup and view all the answers

    What is a managed floating exchange rate system?

    <p>A middle ground between the floating system and the fixed system</p> Signup and view all the answers

    What is the main driver force in Realism?

    <p>National interest</p> Signup and view all the answers

    What does Realism suggest about the international system?

    <p>It is characterized by anarchy</p> Signup and view all the answers

    What is the Security Dilemma according to Realism?

    <p>A situation where states are uncertain about each other's intentions</p> Signup and view all the answers

    What is the Vienna Congress?

    <p>An agreement between major states to balance power</p> Signup and view all the answers

    What is Realism's view on international organizations and institutions?

    <p>They are ineffective in promoting peace</p> Signup and view all the answers

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