Question : 61.An aspect of the Bretton Woods agreement was a commitment : 1299395

61.An aspect of the Bretton Woods agreement was a commitment not to use:  

A. the system of fixed exchange rates.

B. devaluation as a weapon of competitive trade policy.

C. gold as a measure to fix the value of currencies.

D. funds from the International Monetary Fund and the World Bank.

E. the U.S. dollar as a reference currency.

62.Under a fixed exchange rate regime, what would be the result if a country rapidly increased its money supply by printing currency?  

A. It would lead to increase in the worth of the currency.

B. The prices of imports would become more attractive in the country.

C. The country’s goods would be highly competitive in world markets.

D. Trade surplus in the country would increase.

E. It would lead to price deflation in the country.

63.The architects of the Bretton Woods agreement built limited flexibility into the fixed exchange rate system in order to: 

A. avoid high unemployment.

B. facilitate competitive currency devaluations.

C. widen balance-of-payments gap between countries.

D. increase money supply and thereby price inflation.

E. avoid balance-of-trade equilibrium between countries.

64.The architects of the Bretton Woods agreement wanted to avoid high unemployment, so they built limited flexibility into the fixed exchange rate system. Which of the following is a major feature of the International Monetary Fund (IMF) Articles of Agreement that fostered this flexibility?  

A. Competitive currency devaluations

B. Lending facilities

C. Communist ideologies

D. Floating exchange rates

E. Unrestricted authority to print currency

65.Which of the following statements is true about the role of the International Monetary Fund? 

A. It never interfered in the monetary and fiscal conditions of its member countries.

B. It was authorized to approve currency devaluations of only up to 10 percent.

C. It required member countries to adhere to specific agreements irrespective of the amount of funds the countries borrowed.

D. It lent money under the International Bank for Reconstruction and Development (IBRD) scheme and a second scheme which is overseen by the International Development Association (IDA).

E. It helped deficit-laden countries bring down inflation rates by providing short-term foreign currency loans.

66.How does the International Monetary Fund (IMF) provide loans to deficit-laden countries? 

A. It prints the required currencies, thereby increasing money supply in those countries.

B. It acts as a market, buying goods from these countries and selling it to developed countries.

C. A pool of gold and currencies contributed by its members provides the resources for the lending operations.

D. The World Bank lends the required amount to the IMF at a low interest rate.

E. It collects money from those countries that wish to devaluate their currencies.

67.Which term was not defined in the International Monetary Fund’s Articles of Agreement but was intended to apply to countries that had suffered permanent adverse shifts in the demand for their products? 

A. Competitive disadvantage

B. Capital flight

C. Fundamental disequilibrium

D. Break-even point

E. Diseconomies of scale

68.The system of adjustable parities allowed for the devaluation of a country’s currency by more than 10 percent if the International Monetary Fund (IMF) agreed that a: 

A. country was in a trade surplus with the other member countries.

B. country’s balance of payments was in “fundamental disequilibrium.”

C. country had achieved balance-of-trade equilibrium.

D. country’s imports were lower than its exports.

E. country was facing price inflation.

69.Without currency devaluation, a country in “fundamental disequilibrium” would experience:  

A. a persistent trade surplus.

B. a balance-of-payments equilibrium.

C. an increase in exports.

D. high unemployment.

E. deflation.

70.Which of the following was the initial mission of the World Bank? 

A. Maintaining order in the international monetary system

B. Financing the building of Europe’s economy by providing low-interest loans

C. Taking over as the successor to the International Monetary Fund

D. Reviving the gold standard system

E. Enforcement of the floating exchange rate system