International Monetary System Quiz

What is the main purpose of the International Monetary System today?

• To enhance high growth with stable price levels

• To regulate domestic trade

• To promote local currencies

• To eliminate currency exchange

Which system was in place from 1816 to 1914?

• Interwar Period

• Classic Gold Standard

• Bretton Woods System

• Managed Float System

What was a significant consequence of the Classic Gold Standard?

• Devaluation of currencies

• Elimination of international trade

• Increased currency volatility

• Automatic correction of Balance of Payments imbalances

What led to the collapse of the Classic Gold Standard?

• Stabilization of currencies

• World War I and excessive money printing

• Increased gold reserves

• Global economic growth

What was the Bretton Woods System based on?

• Commodity-based currency

• Gold standard

• Fiat currency

• US Dollar-based Monetary System

What was the Smithsonian Agreement?

• A temporary agreement to adjust fixed exchange rates

• A new gold standard

• An agreement to eliminate currency exchange

• A permanent exchange rate system

What is the current International Monetary System characterized by?

• Bretton Woods System

• Fixed exchange rates

• Managed float system

• Gold standard

What is one criticism of the current International Monetary System?

• It eliminates currency exchange

• It is incompetent in avoiding global financial crises

• It prevents global trade

• It promotes fixed exchange rates

What does the Triffin Dilemma refer to?

• The conflict between domestic and international monetary objectives

• The stability of gold reserves

• The elimination of currency speculation

• The fixed exchange rate system

What was a major outcome of the Nixon Shock?

• End of the Bretton Woods system

• Increase in gold reserves

• Return to the gold standard

• Stabilization of the US dollar