Question

QUESTION 1 Inflows of investment capital are accounted for in a state's:

Capital Account

Balance of Trade

Current Account

All of the above

None of the above

QUESTION 2

1. Monetary policy may included:

   		Interest rate targets
   		Exchange rate targets
   		Supply of currency
   		All of the above
   		None of the above

QUESTION 3

1. Give one example of a policy that might be imposed as part of an IMF lending conditionality.

QUESTION 4

1. The monetary regime of the Bretton Woods system was the classical gold standard.

   True

   False

QUESTION 5

Which of the following is NOT a function of the IMF?

		Accumulate and publish national economic data for member states.
		Provide advice and analysis to member states.
		Provide short-term loans to states experiencing a balance of payments crisis to support their currencies.
		All of the above are functions of the IMF.
		None of the above are functions of the IMF.

Answer 1

a) Investments are part of the capital account in the balance of payment of a nation. The answer is "A".

b) "All of the above" are part of the nations monetary policy.

c) IMF may impose devaluation of the currency, opening up to trade and reducing government involvement in the economy i.e austerity.

d) "True"

Bretton wood was dependent on the gold standard. Which collapsed in 1970's

e) "All of the above are functions of the IMF"

They lend for short term, advice and publish reports for member nations.