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50. All countries were to fix the value of their currency in terms of gold but were not required to exchange their
currencies for gold, according to the 1944:
51. The objective of establishing the World Bank was to:
52. Which of the following observations is true of the Bretton Woods agreement?
53. An aspect of the Bretton Woods agreement was a commitment not to use:
54. Under a fixed exchange rate regime, what would be the result if a country rapidly increased its money
supply by printing currency?
55. The architects of the Bretton Woods agreement built limited flexibility into the fixed exchange rate system
in order to:
56. How does the International Monetary Fund (IMF) provide loans to deficit-laden countries?
57. 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?
58. Without currency devaluation, a country in "fundamental disequilibrium" would experience:
59. Which of the following was the initial mission of the World Bank?
60. Which of the following was responsible for the World Bank shifting its focus from Europe to third-world
nations?
61. What was the effect of the Marshall Plan?
62. Which of the following is true of the International Bank for Reconstruction and Development (IBRD)
scheme of the World Bank?
63. Which of the following observations about the International Development Association (IDA) scheme of the
World Bank is true?
64. The collapse of the fixed exchange rate system has been traced to the:
65. Under the U.S. macroeconomic policy package of 1965-1968, President Lyndon Johnson backed an increase
in U.S. government spending that was financed by:
66. Under the U.S. macroeconomic policy package of 1965-1968, President Lyndon Johnson backed an increase
in U.S. government spending that was financed by an increase in the money supply, resulting in:
67. Which of the following was an announcement made by U.S. President Nixon to enable the devaluation of
the dollar during the increase in inflation in 1971 in the United States?
68. Which of the following was the weakness of the Bretton Woods system?
69. In January 1976, which one of the followed revised the International Monetary Fund's Articles of
Agreement to reflect the new reality of floating exchange rates?
70. Which of the following was abandoned as per the Jamaica agreement of 1976?
71. Which of the following statements is true about the changes in the world monetary system since March
1973?
72. 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?
73. The fall in the value of the U.S. dollar between 1985 and 1988 was caused by:
74. Under the Plaza Accord of 1985, the Group of Five major industrial countries concluded that it would be
desirable if:
75. 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?
76. From mid-2008 through early 2009, the value of the dollar moderately increased against major currencies,
despite the fact that the American economy was suffering from a serious financial crisis. Which of the following
was a reason for this phenomenon?
77. Which of the following is a characteristic of the floating exchange rate regime?
78. Which of the following is an argument for a fixed exchange rate system?
79. Which of the following is true of monetary contraction in a fixed exchange rate system?
80. Under the Bretton Woods system, if a country developed a permanent deficit in its balance of trade that
could not be corrected by domestic policy, this would require the:
81. Which of the following is an argument for a floating exchange rate system?
82. In comparison to a floating exchange rate regime, a fixed exchange rate system is characterized by:
83. Critics of floating exchange rates claim that trade deficits are determined by the:
84. Which one of the following refers to an exchange rate system under which a country's exchange rate is
allowed to fluctuate against other currencies within a target zone?
85. Which of the following holds true for a pegged exchange rate system?
86. Adopting which kind of an exchange rate regime moderates inflationary pressures in a country?
87. What can a country introduce if it wants to commit itself to converting its domestic currency on demand into
another currency at a fixed exchange rate?
88. How does a country that introduces a currency board make its commitment to converting its domestic
currency on demand into another currency at a fixed exchange rate credible?
89. Which of the following statements is true about a currency board system?
