30 Questions
What was the name of the conference that established the new international monetary system in 1944?
The Bretton Woods Conference
What was the key feature of the Bretton Woods system?
The US dollar was the only currency backed by gold.
Why did the Bretton Woods system collapse in 1971?
The US could not maintain the fixed value of the dollar to gold.
What was the key feature of the flexible exchange rate system that replaced the Bretton Woods system?
Exchange rates were determined by the market forces of demand and supply.
How many countries attended the Bretton Woods conference?
44
What was the official name of the Bretton Woods conference?
The United Nations Monetary and Financial Conference
What is the primary function of the International Finance Corporation (IFC)?
Providing loans and loan guarantees to private investors in developing countries
What is the primary function of the Multilateral Investment Guarantee Agency (MIGA)?
Providing political risk insurance (guarantees) for projects in developing countries
What is the primary function of the International Centre for Settlement of Investment Disputes (ICSID)?
Settling investment disputes between foreign investors and host developing countries
Which of the following is a primary function of the World Bank?
Helping war-devastated countries and underdeveloped countries by granting them loans for reconstruction and development
Which of the following is NOT a function of the World Bank?
Settling investment disputes between foreign investors and host developing countries
How does the World Bank help underdeveloped countries increase their economic growth and reduce poverty?
By providing extensive experience and financial resources to help underdeveloped countries increase their economic growth, reduce poverty, and improve their standard of living
What is the focus of international finance?
Global economy
Which theory suggests that certain regions would benefit from adopting a single currency?
Optimum Currency Area Theory
What does the International Fischer Effect (IFE) theory assume about nominal interest rates?
They mirror fluctuations in spot exchange rates
Which factor refers to the potential negative outcomes for a business due to changes in government policies or political instability?
Political Risks
What does Interest Rate Parity (IRP) describe?
Equilibrium state in foreign exchange rates
Why is an understanding of foreign exchange important for investors and managers?
To deal with unforseen changes in exchange rates
What does the WTO Agreements provide for in terms of the trade facilitation agreement?
Practical support for implementation
How should environmental protection measures be applied by WTO members?
Equally to national and foreign businesses
What is one goal of the WTO regarding trading system inclusivity?
Allowing more women and small businesses to participate in trade
With whom does the WTO maintain regular dialogue to enhance cooperation and build partnerships?
Civil society, labour unions, universities, and the business community
What does the WTO provide a platform for through initiatives like the trade dialogues initiative and annual public forum?
To discuss developments in world trade and propose ways of enhancing the multilateral trading system
What aspect of trade does the WTO recognize as growing in importance according to the text?
Ecommerce
When was the Asian Development Fund established?
1974
Who was the first President of the Asian Development Bank?
Takeshi Watanabe
What did ADB increase its support for after the world's first oil price shock?
Energy projects
Which region did ADB aim to serve initially with its assistance programs?
Rural areas
In what year did ADB open its first field office in Bangladesh?
1982
What set back Asia's economic gains in mid-1997 according to the text?
A financial crisis
Explore theories and concepts in international finance management, including the International Fischer Effect (IFE) and the Optimum Currency Area Theory (OCA). Understand how economic interactions between countries are analyzed and managed in the context of international finance.
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