International Monetary Organizations Quiz

International Monetary Fund (IMF) = Washington, D.C. Bank of International Settlements (BIS) = Basel, Switzerland United States = Washington, D.C. Japan = Basel, Switzerland

United States = Major role West Germany = Major role Japan = Major role France = Minor role

Foreign currency earned = Credit entry Foreign currency paid out abroad = Debit entry Domestic currency earned = Debit entry Domestic currency paid out abroad = Credit entry

<p>Debit entry = Minus sign Credit entry = No sign Balance of payments surplus = Credit balance Balance of payments deficit = Debit balance</p> Signup and view all the answers

<p>Consult IMF in Washington, D.C. = Currency devaluation or revaluation over 10% Advise BIS in Basel, Switzerland = Currency devaluation or revaluation under 10% Seek approval from G10 countries = Currency stabilization Implement independent currency policy = Currency pegging</p> Signup and view all the answers

<p>F.O.B. = Free on board, excluding additional costs after leaving the port Invisible transactions = Trade transactions without physical documents as evidence Investment income = Covering dividends and interest on loans Current account = Combination of trade balance and invisible transactions</p> Signup and view all the answers

<p>Exporting goods = Foreign exchange earned, credit entry Importing goods = Foreign exchange lost, debit entry Receiving dividends from abroad = Foreign exchange earned, credit entry Extending a loan to another country = Outflow of funds, debit entry</p> Signup and view all the answers

<p>Transportation and travel expenses = Invisible transactions Military expenditures = Invisible transactions Exports and imports = Trade balance Dividends and interest on loans = Investment income</p> Signup and view all the answers

<p>American soldier buying beer in West Germany = Invisible transaction affecting the balance Trade balance register exports and imports = Net difference between exports and imports Receiving dividends from abroad = Foreign exchange earned, credit entry Extending a loan to another country = Debit item registered on the balance of payments</p> Signup and view all the answers

<p>Trade balance = Difference between a country's exports and imports Credit entry in foreign exchange transactions = Represents earning foreign exchange Debit entry in foreign exchange transactions = Represents loss of foreign exchange Investment income from abroad = Includes dividends and interest on loans</p> Signup and view all the answers