McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
Chapters
| 51. |
A primary result of the Bretton Woods Agreement was: |
| A. | the establishment of the European Monetary System (EMS). |
| B. | establishing specific rules for when tariffs and quotas could be imposed by governments. |
| C. | establishing that exchange rates of most major currencies were to be allowed to fluctuate 1% above or below their initially set values. |
| D. | establishing that exchange rates of most major currencies were to be allowed to fluctuate freely without boundaries (although the central banks did have the right to intervene when necessary). |
| Answer» C. establishing that exchange rates of most major currencies were to be allowed to fluctuate 1% above or below their initially set values. | |
| 52. |
The currency of country X is pegged to the currency of country Y. Assume that county Y's currency depreciates against the currency of country Z. It is likely that country X will export _______ to country Z and import _______ from country Z. |
| A. | more; more |
| B. | less; less |
| C. | more; less |
| D. | less; more |
| Answer» B. less; less | |
| 53. |
Which of the following would likely have the least direct influence on a country's current account? |
| A. | inflation. |
| B. | national income. |
| C. | exchange rates. |
| D. | tariffs. |
| Answer» A. inflation. | |
| 54. |
Over time, international trade (exports plus imports) as a percentage of GDP has: |
| A. | increased for most major countries. |
| B. | decreased for most major countries. |
| C. | stayed about constant for most major countries. |
| D. | increased for about half the major countries and decreased for the others. |
| Answer» D. increased for about half the major countries and decreased for the others. | |
| 55. |
Major functions of 'IMF' are |
| A. | Oversea's arrangements of fixed exchange rate |
| B. | providing short term capital |
| C. | providing leadership on health matters |
| D. | both a and b |
| Answer» B. providing short term capital | |
| 56. |
International Monetary Fund is classified as |
| A. | intergovernmental organization |
| B. | international organization |
| C. | interregional organization |
| D. | One state organization |
| Answer» C. interregional organization | |
| 57. |
International Monetary Fund formal existence came into being in |
| A. | 12 May, 1945 |
| B. | 27 July, 1945 |
| C. | 27 December, 1945 |
| D. | 27 September, 1945 |
| Answer» A. 12 May, 1945 | |
| 58. |
International Monetary Fund is headquartered in |
| A. | Washington, United States |
| B. | New York City, United States |
| C. | Geneva, Switzerland |
| D. | Avenue Du Mont Blanc, Switzerland |
| Answer» B. New York City, United States | |
| 59. |
How does the IMF meet its primary objective? |
| A. | By promoting free international trade |
| B. | By overseeing the balance of payments, acting as a forum of world negotiation and regulating world exchange rates |
| C. | By acting as an arbitrator for the dispute settlement of world trade matters |
| D. | By aligning its primary objective with the monetary objectives of national governments |
| Answer» A. By promoting free international trade | |
| 60. |
A eurocurrency is: |
| A. | a bank deposit held in a country that does not issue that currency in which the deposit is denominated. |
| B. | the currency of European Economic and Monetary Union - called the 'euro' for short. |
| C. | a bank deposit in a non-European currency held in Europe. |
| D. | a bank deposit in a European currency held outside of Europe. the currency of the European Union. |
| Answer» C. a bank deposit in a non-European currency held in Europe. | |
| 61. |
The eurocurrency market did not develop until the late 1950s because: |
| A. | the countries of the Soviet bloc did not earn dollars in foreign trade until 1958. |
| B. | European currencies were only convertible for non-residents before 1958. |
| C. | the major European economies had not recovered sufficiently from the effects of World War II. |
| D. | US banks were not permitted to open branches outside the USA until 1958. |
| Answer» B. European currencies were only convertible for non-residents before 1958. | |
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