Vocabulary
The process of aligning a country’s currency with the U.S. dollar.
What is Dollarization?
True or False:
The gold standard is the practice of pegging currencies to gold, but not guaranteeing convertibility.
What year was the Bretton Woods system established?
What is 1944?
The mission at first was to finance the building of ____ economy.
What is Europe's?
Which currency is the current world's exchange currency?
What is The US Dollar?
The amount of currency needed to purchase one ounce of gold.
What is the Gold Par Value?
True or False:
A major strength of the gold standard was it contained a powerful mechanism for achieving balance-of-trade equilibrium by all countries.
What is True?
It was decided that each country's currency would be pegged to what?
What is The US Dollar?
What is the official name/acronym of the World Bank?
What is The International Bank for Reconstruction and Development (IBRD)?
How did the United States dollar obtain the central position as the world's reserve currency?
What is The Bretton Woods System?
What is the term to describe when the currency value is fixed relative to a reference currency?
What is the Pegged Exchange Rate?
What year did the gold standard officially die?
What is 1939?
What was the fixed rate of gold that the US Dollar was pegged to?
What is $35 per ounce?
The IMF _____ __ _________ were heavily influenced by the worldwide financial collapse, competitive devaluations, trade wars, high unemployment, hyperinflation, and general economic disintegration.
What is Articles of Agreement?
What country do naysayers believe will overtake the US dollar within the next decade?
What is China (yuan)?
Definition: Arises when people behave recklessly because they know they will be saved if things go wrong.
What is Moral Hazard?
What attributed to the fall of the gold standard?
What is countries intentionally devalued their currency.
What institution was created to oversee Bretton Woods and provide financial assistance to countries experiencing difficulties?
What is The International Monetary Fund (IMF)?
Which plan overshadowed the initial mission of the World Bank?
What is the Marshall Plan?
What is the standout reason that Chinese financial markets are different from American financial markets (and thus the reason foreigners don't want to hold yuan-dominated assets)?
What is They are not free and open?
What is a system under which a country’s currency is nominally allowed to float freely against other currencies but in which the government will intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value?
What is the Dirty-Float System?
Under the gold standard, what is 1 U.S. dollar equivalent to in gold?
What is 23.22 grains of gold?
What world event set Bretton Woods (and other international monetary systems) into motion to secure peace and economic stability?
What is World War 2?
The second way to impose discipline is by having a fixed exchange rate regime that imposes monetary discipline on countries. What does this do?
What is Curtails price inflation?
What percent of all known foreign exchange reserves held by central banks around the world were US dollars?
What is 60.5%?