Multiple Choice Quiz


1	Which of the following is NOT a function of the International Monetary Fund
		A)	provider of expert economic advice
		B)	facilitator of international trade
		C)	lender to nations in short-term economic distress
		D)	lender to poor countries for major projects that will help them grow


2	The International Monetary Fund was created in the aftermath of
		A)	the September 11, 2001 terrorist attacks.
		B)	the Treaty of Versailles that ended World War I.
		C)	the U.S. Civil War.
		D)	World War II.


3	International trade requires a well-functioning ________ which the International Monetary Fund is charged with helping foster.
		A)	currency exchange market
		B)	electoral system
		C)	judiciary
		D)	bond market


4	The Special Drawing Right (SDR) is
		A)	is the currency if Australia.
		B)	a made up currency that is a weighted average of major currencies.
		C)	the new currency of Europe.
		D)	the new currency of Asia.


5	A "Hard Currency" is
		A)	physically hard (like a coin).
		B)	a currency that hard-lined communist regimes use.
		C)	a currency that is easily exchange for gold or other currencies of known value.
		D)	a currency that has one value in its country and another on world markets.


6	A poor country ________ its International Monetary Fund quota with hard currency
		A)	must pay all of
		B)	does not need to pay any of
		C)	can pay as little as 25% of
		D)	can pay as little as 75% of


7	Decisions that are made by the International Monetary Fund are made with
		A)	votes on a one-country one-vote basis.
		B)	votes based on population of the countries.
		C)	dictated by the United States.
		D)	votes based on quotas (the more you pay in the more influence you have).


8	One of the contributing factors to the Asian financial crisis of the late 1990s was
		A)	the Korean War.
		B)	high demand for exports from Asia.
		C)	unhedged financial risks taken by Asian banks.
		D)	high relative oil prices.


9	The International Monetary Fund's response to the Asian financial crisis of the late 1990s was
		A)	to ignore it, they were not members.
		B)	to impose conditions for aid that were in the affected nations' short-term interests but not their long-term interests.
		C)	to impose conditions for aid that were in the affected nations' long-term interests but not their short-term interests.
		D)	universally hailed by international economists as helpful to the countries in the short-term and long-term.


10	A condition for International Monetary Fund loans to countries affected by the Asian financial crisis that made the short-term problem worse was
		A)	the tightening of credit.
		B)	the requirement for open and honest financial statements.
		C)	the requirement that defense budgets be cut.
		D)	the suggestions for democratic reform.

2003 McGraw-Hill Higher Education
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