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 (D)</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 (B)</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 (A)</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 (B)</p> Signup and view all the answers

What is the purpose of IMF 'conditionality'?

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

What is the main driver force in Realism?

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

What does Realism suggest about the international system?

<p>It is characterized by anarchy (B)</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 (C)</p> Signup and view all the answers

What is the Vienna Congress?

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

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

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

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