5 Questions
What is the International Monetary Fund (IMF) charged with overseeing?
International monetary system and exchange rate stability
What is the gold exchange standard?
A payments system in which currencies are valued in terms of a currency on the 'gold standard'
When did the IMF's role switch to helping countries deal with the consequences of floating exchange rates and oil crises?
1971
What is devaluation in the context of currency exchange?
The reduction in the official rate at which one currency is exchanged for another
In what year did the IMF increasingly focus on supporting developing countries afflicted with debt crises?
Early 1980s
Study Notes
International Monetary Fund (IMF)
- Charged with overseeing the global financial system, exchange rates, and international payments
Gold Exchange Standard
- A system where countries peg their currencies to the value of gold, which serves as a reserve asset
IMF's Role Shift
- 1970s: IMF's role shifted from maintaining the fixed exchange rate system to helping countries deal with the consequences of floating exchange rates and oil crises
Devaluation
- A decrease in the value of a country's currency relative to other currencies, often used to correct a trade deficit or stimulate exports
IMF's Focus on Developing Countries
- 1980s: IMF increasingly focused on supporting developing countries afflicted with debt crises, providing financial assistance and policy guidance to help them recover
Test your knowledge of the International Monetary Fund (IMF) with this quiz. Explore the history, functions, and impact of this intergovernmental organization established in 1947.
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