Finance

Question 1

Fixed exchange rate

Answer 1

attached from one currency to another, e.g gold standard, no fluctuation

Question 2

World Bank/IMF

Answer 2

gives loans to countries with conditions (SAPs), International Monetary Fund

Question 3

Monetary policy

Answer 3

how much your money is worth and how governments decide to value money, exchange rate regimes etc

Question 4

Central Banks

Answer 4

political institutions that only other banks can have transactions with

Question 5

Inflation

Answer 5

increase in the price of goods and services

Question 6

Hyperinflation

Answer 6

money is basically worthless

Question 7

Currency

Answer 7

sole legal tender of a country

Question 8

Gold Standard

Answer 8

all currencies were pegged to the price of gold

Question 9

Bretton Woods

Answer 9

set up the GATT (WTO), World Bank, IMF, new currency regime backed on USD

Question 10

Managed Float

Answer 10

ceiling and floor for amount of fluctuation of supply and demand

Question 11

Floating Exchange Rate

Answer 11

only supply and demand, means more fluctuation

Question 12

Reserves

Answer 12

money or gold kept by banks just in case

Question 13

Structural Adjustment Programs

Answer 13

conditions on loans from World Bank and IMF, list of things they need to do in order to get loans

Question 14

Remittances

Answer 14

payment of workers abroad to back home

Question 15

Finance

Answer 15

movement of money/currency across state borders

Question 16

3 causes of the end of Bretton Woods

Answer 16

1. European and Japanese Recovery
2. US overspending on Vietnam War
3. US dollars going to buy oil

Question 17

Central Banks Functions

Answer 17

control over monetary policy (how much is printed, how much foreign currency is in reserve, how much gold is in reserve, exchange rate)
Fiscal policy (management of deficits)
Discount rate or marginal lending rate (interest rate on loans from central bank)