#1
What is a fixed exchange rate system?
Exchange rates determined by market forces
Rates fluctuate within a specific range
Rates are set by government and don't change
Rates determined by a basket of currencies
#2
Which international organization is responsible for overseeing the monetary system and providing financial assistance to member countries in times of need?
World Trade Organization (WTO)
Bank for International Settlements (BIS)
International Monetary Fund (IMF)
European Central Bank (ECB)
#3
What is the term for a situation where a country intentionally lowers the value of its currency against other currencies?
Devaluation
Revaluation
Depreciation
Appreciation
#4
What is the primary purpose of the International Monetary Fund (IMF) in the global economy?
Promoting bilateral trade agreements
Stabilizing exchange rates
Enforcing trade restrictions
Controlling fiscal policies
#5
What is the primary goal of the International Monetary System?
Stabilize exchange rates
Maximize economic growth
Eliminate inflation
Promote trade restrictions
#6
Which organization acts as the lender of last resort in the international monetary system?
World Bank
International Monetary Fund (IMF)
European Central Bank
Bank for International Settlements (BIS)
#7
What is the Bretton Woods Agreement?
A treaty to establish the European Union
A pact to create the World Trade Organization
An agreement to regulate international monetary relations
A deal to abolish tariffs on agricultural products
#8
What is a 'currency board'?
A central bank that regulates currency exchange
A monetary authority that issues a domestic currency at a fixed exchange rate
An international organization responsible for stabilizing global currency markets
A regulatory body overseeing foreign exchange markets
#9
What is the term for a sudden and significant decrease in the value of a currency?
Depreciation
Devaluation
Recession
Currency crisis
#10
In the context of exchange rate policies, what does the term 'dirty float' refer to?
Manipulation of currency values
Free-floating exchange rates
Intervention in currency markets
Exchange rates fixed by government decree
#11
What is the term for a situation where a country's currency is worth more than its official exchange rate?
Depreciation
Devaluation
Revaluation
Overvaluation
#12
What is the purpose of the Special Drawing Rights (SDRs) issued by the IMF?
To fund infrastructure projects
To facilitate bilateral trade
To supplement member countries' official reserves
To enforce exchange rate stability
#13
Which country is known for adopting a managed float exchange rate system?
United States
China
Germany
India
#14
Under the gold standard, what determined the value of a currency?
Market demand and supply
Government regulations
The amount of gold held by the central bank
International treaties
#15
What is the Plaza Accord, signed in 1985, primarily aimed at achieving?
Stabilizing commodity prices
Reducing inflation rates
Controlling interest rates
Adjusting exchange rates
#16
What is the role of the Exchange Rate Mechanism (ERM) in the European Monetary System (EMS)?
Setting fixed exchange rates
Facilitating currency speculation
Promoting exchange rate flexibility
Preparing for a common currency