IMF, WTO, WB

Question 1

What type of organization is the IMF?

Answer 1

Intergovernmental organization

Question 2

When was the IMF established?

Answer 2

1947

Question 3

Where was IMF located?

Answer 3

Washington, DC

Question 4

How many member states are there in IMF?

Answer 4

!86 states

Question 5

IMF was created as part of the___

Answer 5

1944 Bretton Woods agreement.

Question 6

IMF charged with overseeing the __________ to ensure __________ and encouraging members to eliminate restrictions on trade and currency exchange (Heywood, 2011).

Answer 6

international monetary system
exchange rate stability

Question 7

the price at which one currency is exchanged for another (Heywood, 2011).

Answer 7

exchange rate

Question 8

a payments system in which currencies are valued in terms of a currency that is itself on the ‘gold standard’ (its currency can be exchanged for gold) (Heywood, 2011).

Answer 8

gold exchange standard

Question 9

the reduction in the official rate at which one currency is exchanged for another (Heywood, 2011).

Answer 9

devaluation

Question 10

Bretton Woods system collapsed in ____

Answer 10

1971

Question 11

IMF’s role switched ________ deal with the consequences of floating exchange rates and the oil crises of 1973 and 1979.

Answer 11

to helping countries

Question 12

From the early 1980s onwards, the IMF increasingly focused on __________ afflicted with debt crises and, in due course, transition countries (Heywood, 2011).

Answer 12

supporting developing countries

Question 13

ROLES OF IMF

Answer 13

1. Facilitate the cooperation of countries on monetary policy
2. Assist the liberalization of international trade
3. Help stabilize exchange rates between countries
4. Maintain a multilateral system of payments that eliminates foreign exchange restrictions
5. Provide a safeguard to members of the IMF against balance of payments crises
6. Try to reduce the effects of volatility in countries’ balance of payments accounts

Question 14

each year, the IMF sends economists to each of its member countries to analyze the country’s economic situation.

Answer 14

surveillance

Question 15

during the surveillance, the team examines the following:

Answer 15

fiscal and monetary policy, exchange rate, general macroeconomic stability, and any related policies, such as labor policy, trade policy, and social policy (such as the pension system)

Question 16

activity of the IMF where member countries with balance of payments problems can receive credits and loans to pay off their obligations and readjust their economic policies so that they will not face another crisis or near-crisis.

Answer 16

Financial assistance

Question 17

the IMF provides technical assistance on
_______

these programs are aimed at strengthening developing countries’ abilities to reform and properly manage their macroeconomic policies

Answer 17

on fiscal and monetary policy, regulatory procedures, tax policy, and collection of statistics, among other issues

Question 18

what are the criticisms on IMF

Answer 18

1.Fiscal discipline
2.Redirection of public spending toward education, health, and infrastructure.
3.Tax reform
4. Market-determined interest rates.
5. Competitive exchange rates.
6. Trade liberalization (that is, eliminating quotas and tariffs).
7. Openness to foreign direct investment.
8. Privatization of state enterprises.
9. Deregulation.
10. Legal security for property rights

Question 19

Nobel Prize-winning US economist

Answer 19

Joseph Stiglitz (1943)

Question 20

Chair of President Clinton’s Council of
Economic Advisors on

Answer 20

1995 to 1997

Question 21

Chief economist of the World Bank

Answer 21

1997-2000

Question 22

known for his critical views on ______ and on _____

Answer 22

global economic governance
globalization

Question 23

TRUE OR FALSE
He argued that the IMF had imposed
policies on developing countries that
never exacerbated; thus, relieved,
balance-of-payments crises, being
designed more to help banking and
financial interests in the developed
world than to alleviate poverty.

Answer 23

FALSE
argued that the IMF had imposed
policies on developing countries that
often exacerbated, rather than relieved,
balance-of-payments crises, being
designed more to help banking and
financial interests in the developed
world than to alleviate poverty.

Question 24

in Making Globalization Work (2006), he
linked globalization to

Answer 24

‘Americanization

Question 25

an organization responsible for funding postwar reconstruction projects

Answer 25

World Bank

Question 26

initially concentrated on assisting
postwar recovery in _____

Answer 26

Europe

Question 27

the world bank in1960s onwards, focused on the

Answer 27

1960s onwards, focused on the
developing world

Question 28

after the collapse of communism, world bank focuses on

Answer 28

transition countries

Question 29

Roles of world bank

Answer 29

• provides low interest loans to
  support major investment projects
• providing technical
  assistance
• supported large infrastructure
  projects in areas such as energy,
  telecommunications and transport

Question 30

was an agreement amongst
member countries to apply the
multilateral principles of non
discrimination and reciprocity to
matters of trade.

Answer 30

General Agreement on Tariff
and Trades (GATT)

Question 31

in GATT, each country had to concede _________ status to all trading
partners (Heywood, 2011).

Answer 31

most favoured nation

Question 32

a designation given to a country
which is thereby entitled to all and
any favourable trading terms that
apply to other countries (Heywood,
2011).

Answer 32

most favoured nation

Question 33

main purpose of GATT

Answer 33

• reduce tariffs
  and other hindrances.
• liberalization, privatization,
  deregulation (Heywood, 2011).

Question 34

• formed in 1995
• a replacement for GATT,
  established in 1947(Heywood, 2011).

Answer 34

World Trade Organization

Question 35

the use of tariffs, quotas and
other measures to restrict imports,
supposedly to protect domestic
industries (Heywood, 2011).

Answer 35

protectionism

note: they restrict imports and protect domestic industries

Question 36

a system of trading between
states that is unrestricted by tariffs or
other forms of protectionism
(Heywood, 2011).

Answer 36

a system of trading between
states that is unrestricted by tariffs or
other forms of protectionism
(Heywood, 2011).

Question 37

rules, regulations or practices
that hinder imports through, for
instance, the procurement policies
of governments, systematic border
delays, or complex health and
national standards

Answer 37

non-tariff barriers

Question 38

proposals for the reform of
the world economy to provide
better protection for developing
countries by, amongst other things,
altering the terms of trade,
strengthening regulation and
nationalizing foreign enterprises
(Heywood, 2011).

Answer 38

new international economic order