+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
The multi-national institution established to maintain order in the international monetary system
|
IMF - International Monetary Fund
|
|
When was the IMF established?
|
1945
|
|
The IMF was established as part of what agreement?
|
The Bretton Woods Agreement
|
|
Initially, the bretton woods agreement established a system of ______ ______ ______ under which the IMF member countries set a ____ ____ for its currency, quoted in terms of _____ and the ______
|
-fixed exchange rates-par value-gold-USD
|
|
Every currency was backed by what?
|
Gold
|
|
List the objectives of the IMF
|
-promote exchange rate stability-facilitate international flow of currencies-promote international monetary cooperation-make resources available to member countries experiencing balance-of-payment difficulties
|
|
The sum of total assessments levied on member countries (IMF) to form a pool of money from which the IMF draws from to make loans to member countries
|
Quota
|
|
Every country in the IMF pays a % of their ______ every year
|
GDP
|
|
Quotas are the basis for the ________ power of each member nation
|
Voting
|
|
An artificial international reserve asset created to supplement IMF members existing reserves of gold and foreign exchnage
|
SDR - special drawing rights
|
|
The value of the SDR is based upon the weighted average of a basket of WHICH four currencies?
|
USDEuroJapanese yenBritish pound
|
|
Which agreement was a restructuring of the IMF which widened the exchange rate flexibility from 1% to 2.25% from par value?-what year?
|
The Smithsonian Agreement 1971
|
|
Which agreement eliminated the concept of fixed exchange rates and par values in order to accommodate greater flexibility?-what year?
|
The Jamaica agreement - 1976
|
|
What are the three broad categories of exchange rate agreements?
|
1. peg exchange rate to another currency with little/no flexibility (Niger)2. peg rate to another currency within a band (flexible) (Denmark)3. allow the currency to float against other currencies (USA)
|
|
Each country has a bank which is responsible for the policies affecting the value of its currency, what is this bank called?
|
Central Bank
|
