Which of the following statements about the International Monetary Fund (IMF) is TRUE?
A. The IMF was created to reduce tariff barriers between nations.
B. The IMF obtains funds from quota subscriptions charged to member countries.
C. The IMF was created to finance long-term economic development projects in poor countries.
D. The IMF functions as a central bank that conducts monetary policy for the world economy.
Answer: B
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In a fixed exchange rate system, rates are maintained by the central bank's ongoing purchases and sales of currencies
a. True b. False
Production and exchange depend on an reliable infrastructure of
a. transportation b. communication c. sanitation d. electricity e. All of the answers are correct
The traditional tools of monetary policy
A. can only be utilized after obtaining the approval of Congress. B. rely heavily upon changes in individual income tax rates. C. seek to influence an "intermediate" target variable. D. directly impact the economy.
Following the financial collapse in late 2008, the deficit increased, in part because of the
A. weakened state of the economy caused increased spending on unemployment compensation. B. high short-term interest rates and restrictive monetary policy. C. massive expansion of foreign aid to Central American democracies. D. U.S. return to the gold standard.