#1
What is the primary function of the International Monetary Fund (IMF)?
Facilitate international trade agreements
Stabilize exchange rates and assist with monetary cooperation
Provide loans for domestic infrastructure projects
Regulate global stock markets
#2
Which currency is used as the primary reserve currency by many central banks and international institutions?
Euro (EUR)
British Pound (GBP)
United States Dollar (USD)
Japanese Yen (JPY)
#3
What is the main purpose of the World Bank Group?
To provide financial assistance to developing countries for development projects
To regulate global financial markets
To enforce international trade agreements
To promote cultural exchange programs between nations
#4
Which agreement established the European Union's single currency, the Euro?
Maastricht Treaty
Lisbon Treaty
Schengen Agreement
Treaty of Rome
#5
Which of the following is NOT a function of the Bank for International Settlements (BIS)?
Facilitating international monetary cooperation
Regulating global financial markets
Serving as a bank for central banks
Conducting research on economic and monetary issues
#6
Which country was the first to adopt a floating exchange rate system?
United States
United Kingdom
France
Canada
#7
What does the term 'Balance of Payments' refer to in international finance?
The difference between a country's exports and imports
The total value of a country's goods and services produced in a year
The overall financial position of a country in international markets
The total value of a country's foreign assets and liabilities
#8
What is the purpose of Special Drawing Rights (SDRs) issued by the IMF?
To stabilize the prices of essential commodities in developing countries
To provide emergency relief funds during natural disasters
To supplement the official reserves of member countries
To finance the development of renewable energy projects
#9
What is a 'currency peg' in the context of exchange rate systems?
A system where the central bank sets the exchange rate based on market demand and supply
A fixed exchange rate system where a currency's value is tied to another currency or a basket of currencies
A system where countries use multiple currencies interchangeably within their borders
A system where countries agree to freely float their currencies in the international market
#10
What is the primary objective of the Bretton Woods Conference held in 1944?
To establish a system of fixed exchange rates
To establish the International Monetary Fund (IMF)
To rebuild Europe's economy after World War II
To promote free trade agreements among Western nations
#11
Which international financial institution is primarily responsible for providing loans to developing countries for infrastructure projects?
International Monetary Fund (IMF)
World Bank Group
Bank for International Settlements (BIS)
Asian Development Bank (ADB)
#12
What is the 'Impossible Trinity' also known as?
The Mundell-Fleming trilemma
The Keynesian dilemma
The Lucas critique
The Tobin tax paradox
#13
What is the 'Impossible Trinity' in international finance?
The concept that a country cannot have fixed exchange rates, independent monetary policy, and free capital movement simultaneously
The theory that global economic growth is always constrained by resource scarcity
The principle that a country's balance of payments must always equal zero
The notion that trade imbalances between countries are impossible to correct
#14
Which country is known for implementing a 'currency board' system?
China
Argentina
Germany
Australia
#15
What is the 'Triffin dilemma' in international finance?
The conflict between short-term and long-term economic goals
The challenge of maintaining economic growth while protecting the environment
The inherent contradiction between a national currency's role as a domestic medium of exchange and its role as a global reserve currency
The difficulty of achieving monetary stability in the face of speculative attacks on a country's currency
#16
Which country operates under a dual exchange rate system, consisting of both an official and a parallel market rate?
Iran
South Korea
Russia
India