IMF Quiz
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What was the original purpose of the International Monetary Fund (IMF) according to the Bretton Woods agreement?

  • To establish a gold exchange standard
  • To provide financial aid to developing countries
  • To oversee the international monetary system and ensure exchange rate stability (correct)
  • To encourage restrictions on trade and currency exchange
  • What is the definition of 'devaluation' as per the text?

  • The stabilization of exchange rates
  • The increase in the official rate at which one currency is exchanged for another
  • The reduction in the official rate at which one currency is exchanged for another (correct)
  • The elimination of currency exchange restrictions
  • What led to the shift in the IMF's role in 1971?

  • The collapse of the Bretton Woods system (correct)
  • The oil crises of 1973 and 1979
  • The increase in developing countries afflicted with debt crises
  • The transition to a gold exchange standard
  • What did the IMF increasingly focus on from the early 1980s onwards?

    <p>Supporting developing countries afflicted with debt crises</p> Signup and view all the answers

    What is the definition of 'exchange rate' based on the text?

    <p>The price at which one currency is exchanged for another</p> Signup and view all the answers

    Study Notes

    The International Monetary Fund (IMF)

    • The original purpose of the IMF, according to the Bretton Woods agreement, was to promote international monetary cooperation, exchange rate stability, and provide temporary financial assistance to countries facing balance of payments problems.

    Key Concepts

    • Devaluation: a reduction in the value of a country's currency relative to other currencies, usually to correct a balance of payments deficit.

    Shift in the IMF's Role

    • The shift in the IMF's role in 1971 was led by the collapse of the Bretton Woods system, which allowed currencies to float against the US dollar, and the US suspension of gold convertibility.

    IMF's Focus from the 1980s

    • From the early 1980s onwards, the IMF increasingly focused on providing financial assistance to developing countries and countries in transition, and promoting economic reform and stability.

    Exchange Rate

    • Exchange rate: the price of one country's currency in terms of another country's currency, determining how much of one currency can be exchanged for another.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    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.

    Use Quizgecko on...
    Browser
    Browser