Question : 81.Which of the following was the weakness of the Bretton Woods : 1299397

81.Which of the following was the weakness of the Bretton Woods system? 

A. It could be wrecked by heavy borrowings from the World Bank and the International Monetary Fund.

B. It could not work if the U.S. dollar was under speculative attack.

C. The inflexibility of the system resulted in high unemployment.

D. It forced fiscal and monetary discipline on participating nations.

E. It allowed the countries to engage in competitive currency devaluations.

82.In January 1976, the _____ revised the International Monetary Fund’s Articles of Agreement to reflect the new reality of floating exchange rates. 

A. Jamaica agreement

B. Bretton Woods agreement

C. Marshall Plan

D. General agreement on Tariffs and Trade

E. Plaza Accord

83.Which of the following was abandoned as per the Jamaica agreement of 1976?  

A. Floating exchange rate system

B. U.S. dollar as the reference currency

C. Gold as a reserve asset

D. Membership to the International Monetary Fund

E. Granting International Monetary Fund loans to less developed countries

84.Which of the following is a main element of the Jamaica agreement of 1976?  

A. The establishment of the International Monetary Fund

B. The adoption of fixed exchange rates

C. The increase in the total annual IMF quotas to $41 billion

D. The declaration of gold as the reserve asset

E. The decrease in the total membership of the International Monetary Fund

85.Which of the following statements is true about the changes in the world monetary system since March 1973? 

A. The value of the U.S. dollar has never seen a fall ever since.

B. Exchange rates have become much more volatile.

C. Exchange rates have become more predictable.

D. The fixed rate system was adopted to calculate exchange rates.

E. The European monetary system as an institution has gained more prominence.

86.Which of the following is one of the reasons for the rapid rise in the value of the dollar between 1980 and 1985 despite a large trade deficit? 

A. Political stability in all other parts of the world

B. Heavy capital outflows from the United States

C. Low real interest rates in the United States

D. Slow economic growth in the developed countries of Europe

E. Increasing exports against decreasing imports in the United States

87.The fall in the value of the U.S. dollar between 1985 and 1988 was caused by: 

A. the economic growth in the developed countries of Europe.

B. a fall in prices of exported U.S. goods.

C. a trade surplus in the U.S. during the previous years.

D. a combination of government intervention and market forces.

E. the protectionism measures adopted by the European countries.

88.Under the Plaza Accord of 1985, the Group of Five major industrial countries concluded that it would be desirable if: 

A. the countries returned to a system of fixed exchange rates.

B. the participating members reverted to the gold standard.

C. the United States adopted protectionism to improve its trade balance.

D. most major currencies appreciated vis-à-vis the U.S. dollar.

E. governments did not regulate the buying and selling of currency.

89.According to the _____ of 1987, the Group of Five major industrial nations agreed that exchange rates had been realigned sufficiently and pledged to support the stability of exchange rates around their current levels by intervening in the foreign exchange markets when necessary to buy and sell currency. 

A. Uruguay round

B. Bretton Woods system

C. Marshall plan

D. Louvre Accord

E. Jamaica agreement

90.Which of the following explains the rise of the dollar against most major currencies in the late 1990s, even though the United States was still running a significant balance-of-payments deficit? 

A. Reduced government intervention in the foreign exchange market

B. Increased foreign investments in U.S. financial assets

C. Low real interest rates in the United States compared to the rest of the world

D. Increased exports as opposed to the imports

E. Increased communism in the United States