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  • 1. Question 1. This World Bank affiliate was developed to encourage direct investment in developing countries by offering private investors insurance against noncommercial risks. A International Development Association B Multilateral Guarantee Agency C Multinational Development Association D International Finance Corporation 2. What does par value refer to? A The value of one currency to another B The price of gold C The amount countries deposit in the International Monetary Fund to belong D A currency's value that is determined by the forces of supply and demand 3. What is the term used to describe when supply and demand for a currency determines its price on the world market? A Managed float B Floating exchange rate system C Crawling pegs D Adjustable peg 4. The International Monetary Fund was developed to oversee the functioning of the international monetary system out of which international meeting?
  • 2. A Bretton Woods Agreement B Louvre Accord C Smithsonian Conference D Jamaica Agreement 5. A country's membership quota for the International Monetary Fund must be made in which forms of deposit. A Silver and gold B US dollars and gold C The country's own currency and gold D Own currency and silver 6. The BOP official reserves comprise these 4 types of assets. A Silver, reserve positions at the IMF, gold, SDRs B Silver, convertible currencies, gold, SDRs C Reserve positions at the IMF, silver, SDRs, convertible currencies D Gold, convertible currencies, SDRs, reserve positions at the IMF 7. The BOP capital account records capital transactions among countries and includes which of the following? A Portfolio investments and foreign direct investments B Unilateral transfers and currency values C Capital investments and financial reserves D FDIs and financial reserves 8. What are convertible currencies? A Currencies that can be freely exchanged for gold
  • 3. B Currencies that can be freely exchanged for silver C Determines IMF voting power D Currencies that can be freely exchanged for other currencies without legal restrictions. 9. BOP current accounts record these 4 types of transactions. A Unilateral transfers, currency exchanges, investment income, imports of goods and services B Currency exchanges, imports of goods and services, unilateral transfers, export of goods and services, C Export of goods and services, imports of goods and services, investment income, unilateral transfers D Unilateral transfers, currency exchanges, export of goods and services, investment income 10.This World Bank affiliate offers soft loans for a small fee. A International Finance Corp B Multilateral Investment Guarantee Agency C International Investment Guarantee Agency D International Development Association 11.The Balance of Payments accounting system is divided into which 4 accounts? A Quota, capital, errors and omissions, currency B Quota, errors and omissions, official reserves, current C Current, capital, official reserves, errors and omissions D Capital, official reserves, current, quota 12.The special drawing rights' value is calculated daily as a weighted average of the market value of which four currencies? A US dollar, European euro, British pound-sterling, Japanese yen B European euro, US dollar, Japanese yen, Chinese yuan
  • 4. C Chinese yuan, European euro, British pound-sterling, US dollar D British pound-sterling, Japanese yen, European euro, Chinese yuan 13.This World Bank affiliate provides debt and equity capital for promising commercial activities in developing countries. A International Financial Corporation B International Development Association C Multilateral Investment Guarantee Agency D Multinational Investment Association 14.This is the official name of the World Bank. A The International Finance Corporation B International Development Association C International Bank for Reconstruction and Development D Multilateral Investment Guarantee Agency 15.What caused the International Debt Crisis? A The OPEC Oil Embargo B World War II C Asian currency collapse D The Great Depression Answer 1B 2B 3B 4A 5C 6D 7A 8A 9C 10C 11C 12A 13A 14C 15A