Chapter 10

Question 0

What is the international monetary system?

Answer 0

A global network of institutions to promote international trade and regulations of currency among western countries

Question 1

What is the Bretton Woods Agreement?

Answer 1

Established system of rules, institutions, and procedures for the postwar global economy

Question 2

What is a fixed exchange rate?

Answer 2

The value of the country’s currency set by the government

Question 3

What is gold standard?

Answer 3

All the printed money would be convertible into gold and could be cashed in at any time for that gold

Question 4

What is the floating exchange rate?

Answer 4

Exchange rate of a country’s currency was no longer fixed by government but found its own value on a foreign exchange market

Question 5

What is the World Bank?

Answer 5

An agency of the United Nations that provides loans to less developed countries that are in financial difficulties

Question 6

What is the international monetary fund(IMF)?

Answer 6

An international agency that works with the world bank to bring stability two international monetary affairs and to help expand world trade

Question 7

What is a centrally planned economy?

Answer 7

Government planners that decide what goods to produce and how much of the goods

Question 8

What is a free market economy?

Answer 8

A system in which government does not intervene in the production and control of goods and services

Question 9

Who is John Maynard Keynes?

Answer 9

A British economist that developed theories that called for a large role for government in the economy

Question 10

What is the general agreement on tariffs and trade?

Answer 10

And agency of the united nations with four principles

Question 11

What are the four principles of the General agreement on tariffs and trade?

Answer 11

1. conducting trade in a non-discriminatory manner
2. treating imported goods for a member country in the same manner as similar domestic goods
3. protecting domestic industries through tariffs and not through measures such as import quotas or fees
4. requiring and country that applied for membership to present a list of four principles and 23 countries

Question 12

What is a tariff?

Answer 12

A tax imposed on imports to increase their price and thus reduce competition with domestic products

Question 13

What is a free trade agreement(FTA)?

Answer 13

An economic treaty between Canada and the United States that sought to promote trade by reducing tariffs and other barriers between the two countries

Question 14

What is the world trade organization(WTO)?

Answer 14

An international organization that works to improve trade relations among the worlds countries especially by removing tariffs and other barriers to trade

Question 15

What is the North American Free Trade Agreement(NAFTA)?

Answer 15

A treaty among Canadians, United States and Mexico to improve trade by removing tariffs and other economic barriers