EASY
This is the institutional arrangement that governs exchange rates.
What is the international monetary system?
This agreement established the International Monetary Fund and the World Bank.
What is the Bretton Woods Agreement?
This type of crisis occurs when a speculative attack on a currency results in a sharp depreciation.
What is a currency crisis?
This was the amount of pure gold that equaled one U.S. dollar under the gold standard.
What is 23.22 grains?
The IMF has been criticized for its one-size-fits-all approach to this type of policy.
What is macroeconomic policy?
This type of exchange rate is determined by market forces with occasional central bank intervention.
What is a managed-float system?
The IMF promotes this by lending money to countries experiencing financial crises.
What is financial stability?
This type of exchange rate allows a smoother balance-of-payments adjustment.
What is a floating exchange rate?
The abandonment of this as a reserve asset was part of the Jamaica Agreement.
What is gold?
This type of crisis results from a loss of confidence in the banking system, leading to bank runs.
What is a banking crisis?
This was the only currency convertible to gold under the Bretton Woods system.
What is the U.S. dollar?
A fixed exchange rate system ensures this type of discipline for governments.
What is monetary discipline?
This is a system where a country pegs its currency to that of another major currency.
What is a pegged exchange rate?
The Bretton Woods system collapsed in this year due to U.S. macroeconomic policies.
What is 1973?
This entity within the World Bank provides low-interest loans to the poorest countries.
What is the International Development Association (IDA)?
This standard pegs currencies to gold and guarantees convertibility.
What is the gold standard?
This was the initial mission of the World Bank.
What is the reconstruction of post-war Europe?
Critics argue that this issue arises when the IMF’s policies encourage reckless behavior, knowing there’s a safety net.
What is moral hazard?
Today, 21% of IMF members allow their currencies to do this.
What is float freely?
In the Jamaica Agreement, IMF quotas were initially increased to this amount, which has since expanded significantly.
What is $41 billion?
In 2019, this country received a $6.5 billion loan from the IMF to avoid default.
What is Pakistan?
This global event triggered a currency crisis in the late 1990s, starting in Asia.
What is the 1997 Asian currency crisis?
The IMF began promoting these types of policies after the 2008 financial crisis.
What are fiscal stimulus and monetary easing?
These four currencies are major global currencies free to float against each other.
What are the U.S. dollar, the euro, the yen, and the British pound?
This country is known to follow a managed float system.
What is China?