Ch. 7 Assignment

Chapter 7 Review Questions

1. What is the function of the international monetary system?

2. Why is the gold standard a type of fixed exchange rate system?

3. What was the initial goal of the World Bank?

4. Why was the IFC established by the World Bank?

5. Why are the quotas important to IMF members?

6. Why did the Bretton Woods system collapse in 1971?

7. Describe the differences between a fixed exchange rate system and a flexible exchange rate

system.