Question 1

A(n) ________ is a three-party instrument on which the drawer makes an unconditional order to a drawee to pay a named payee.

Accepted Answer

A)  allonge 
B)  bill of exchange 
C)  letter of credit 
D)  certificate of deposit 
A)  allonge 
B)  bill of exchange 
C)  letter of credit 
D)  certificate of deposit B

Question 2

Private money is a unit of exchange issued by a government agency (such as a treasury department) or government-controlled financial institution (such as a central bank).

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is a relation between the World Bank and the Global Environment Facility (GEF)?

Accepted Answer

A)  The World Bank is responsible for managing the Trust Fund of the GEF. 
B)  The World Bank determines what projects will be funded by the GEF. 
C)  The GEF only funds nations that are members of the World Bank. 
D)  The GEF is considered as the primary developmental arm of the World Bank. 
A)  The World Bank is responsible for managing the Trust Fund of the GEF. 
B)  The World Bank determines what projects will be funded by the GEF. 
C)  The GEF only funds nations that are members of the World Bank. 
D)  The GEF is considered as the primary developmental arm of the World Bank. A

Question 4

Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________.

Accepted Answer

A)  checking accounts 
B)  asset accounts 
C)  Eurocurrency deposits 
D)  recurring deposits 
A)  checking accounts 
B)  asset accounts 
C)  Eurocurrency deposits 
D)  recurring deposits

Question 5

Which of the following meetings was instrumental in the creation of the International Monetary Fund?

Accepted Answer

A)  the Potsdam Conference 
B)  the Solvay Conference 
C)  the Bretton Woods Conference 
D)  the Second Quebec Conference 
A)  the Potsdam Conference 
B)  the Solvay Conference 
C)  the Bretton Woods Conference 
D)  the Second Quebec Conference

Question 6

Which of the following is true of the International Fund for Agricultural Development (IFAD)?

Accepted Answer

A)  It is considered to be the developmental arm of the IMF. 
B)  It is primarily concerned with funding projects concerning global environmental problems. 
C)  Its membership is limited to the members of the Global Environmental Facility. 
D)  Its membership is open to any member of the UN. 
A)  It is considered to be the developmental arm of the IMF. 
B)  It is primarily concerned with funding projects concerning global environmental problems. 
C)  Its membership is limited to the members of the Global Environmental Facility. 
D)  Its membership is open to any member of the UN.

Question 7

The ________ is an intergovernmental organization, headquartered in Basel, which functions as a bank for the world's central banks.

Accepted Answer

A)  International Monetary Fund 
B)  World Bank 
C)  Bank for International Settlements 
D)  World Trade Organization 
A)  International Monetary Fund 
B)  World Bank 
C)  Bank for International Settlements 
D)  World Trade Organization

Question 8

The IMF's _______ consists of that share of a member state's quota that it did not contribute in its own currency.

Accepted Answer

A)  Standby Arrangement 
B)  Extended Fund Facility 
C)  reserve tranche 
D)  credit tranche 
A)  Standby Arrangement 
B)  Extended Fund Facility 
C)  reserve tranche 
D)  credit tranche

Question 9

The Bank for International Settlements does not provide bridging loans.

Accepted Answer

A) True 
 B)False

Question 10

One of the functions of a central bank is regulating the quantity of money in circulation.

Accepted Answer

A) True 
 B)False

Question 11

When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________.

Accepted Answer

A)  commercial bank 
B)  central bank 
C)  reserve bank 
D)  correspondent bank 
A)  commercial bank 
B)  central bank 
C)  reserve bank 
D)  correspondent bank

Question 12

Which of the following parts of the IMF gives the final approval for the quota a state seeking to join the IMF should pay?

Accepted Answer

A)  member states having at least 85 per cent of the total vote share 
B)  all the member nations of the IMF 
C)  the IMF Board of Governors 
D)  the IMF Executive Board 
A)  member states having at least 85 per cent of the total vote share 
B)  all the member nations of the IMF 
C)  the IMF Board of Governors 
D)  the IMF Executive Board

Question 13

Which of the following is true of private money?

Accepted Answer

A)  It can only be used for making payments between private parties who agree in advance to its use. 
B)  It cannot consist of any other sort of transferable material but official money. 
C)  It can be used to pay public debts. 
D)  It is an example of reserve currency. 
A)  It can only be used for making payments between private parties who agree in advance to its use. 
B)  It cannot consist of any other sort of transferable material but official money. 
C)  It can be used to pay public debts. 
D)  It is an example of reserve currency.

Question 14

In an option contract, if the right is to make a sale, the option is known as a ________.

Accepted Answer

A)  spread eagle 
B)  straddle 
C)  call 
D)  put 
A)  spread eagle 
B)  straddle 
C)  call 
D)  put

Question 15

In an option contract, if the right is to buy a commodity, the option is known as a call.

Accepted Answer

A) True 
 B)False

Question 16

What is the role of the International Development Agency (IDA) and the International Finance Corporation (IFC) in connection with the World Bank?

Accepted Answer

The IDA and the IFC are subsidiaries of

Question 17

The currency exchange mechanism established in 1945 by the Articles of Agreement of the IMF was called the ________.

Accepted Answer

A)  gravity model of trade 
B)  par value system 
C)  gold exchange standard 
D)  gold bullion standard 
A)  gravity model of trade 
B)  par value system 
C)  gold exchange standard 
D)  gold bullion standard

Question 18

Which of the following facilitates come under Special IMF Facilities?

Accepted Answer

A)  reserve tranche 
B)  Special Arrangements 
C)  Concessional IMF Facility 
D)  Contingent Credit Lines 
A)  reserve tranche 
B)  Special Arrangements 
C)  Concessional IMF Facility 
D)  Contingent Credit Lines

Question 19

Which of the following is an example of a central bank that is owned by a national government?

Accepted Answer

A)  the Bank of England 
B)  the Central American Monetary Union 
C)  the World Bank 
D)  the Arab Monetary Fund 
A)  the Bank of England 
B)  the Central American Monetary Union 
C)  the World Bank 
D)  the Arab Monetary Fund

Question 20

The Board of Governors is the highest authority of the IMF.

Accepted Answer

A) True 
 B)False

A(n) ________ is a three-party instrument on which the drawer makes an unconditional order to a drawee to pay a named payee.

Private money is a unit of exchange issued by a government agency (such as a treasury department) or government-controlled financial institution (such as a central bank).

Which of the following is a relation between the World Bank and the Global Environment Facility (GEF)?

Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________.

Which of the following meetings was instrumental in the creation of the International Monetary Fund?

Which of the following is true of the International Fund for Agricultural Development (IFAD)?

The ________ is an intergovernmental organization, headquartered in Basel, which functions as a bank for the world's central banks.

The IMF's _______ consists of that share of a member state's quota that it did not contribute in its own currency.

The Bank for International Settlements does not provide bridging loans.

One of the functions of a central bank is regulating the quantity of money in circulation.

When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________.

Which of the following parts of the IMF gives the final approval for the quota a state seeking to join the IMF should pay?

Which of the following is true of private money?

In an option contract, if the right is to make a sale, the option is known as a ________.

In an option contract, if the right is to buy a commodity, the option is known as a call.

What is the role of the International Development Agency (IDA) and the International Finance Corporation (IFC) in connection with the World Bank?

The currency exchange mechanism established in 1945 by the Articles of Agreement of the IMF was called the ________.

Which of the following facilitates come under Special IMF Facilities?

Which of the following is an example of a central bank that is owned by a national government?

The Board of Governors is the highest authority of the IMF.

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

The Multinational Enterprise

Foreign Investment

Trade in Goods

Services and Labor

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Exam 6: Money and Banking

A(n) ________ is a three-party instrument on which the drawer makes an unconditional order to a drawee to pay a named payee.

Private money is a unit of exchange issued by a government agency (such as a treasury department) or government-controlled financial institution (such as a central bank).

Which of the following is a relation between the World Bank and the Global Environment Facility (GEF)?

Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________.

Which of the following meetings was instrumental in the creation of the International Monetary Fund?

Which of the following is true of the International Fund for Agricultural Development (IFAD)?

The ________ is an intergovernmental organization, headquartered in Basel, which functions as a bank for the world's central banks.

The IMF's _______ consists of that share of a member state's quota that it did not contribute in its own currency.

The Bank for International Settlements does not provide bridging loans.

One of the functions of a central bank is regulating the quantity of money in circulation.

When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________.

Which of the following parts of the IMF gives the final approval for the quota a state seeking to join the IMF should pay?

Which of the following is true of private money?

In an option contract, if the right is to make a sale, the option is known as a ________.

In an option contract, if the right is to buy a commodity, the option is known as a call.

What is the role of the International Development Agency (IDA) and the International Finance Corporation (IFC) in connection with the World Bank?

The currency exchange mechanism established in 1945 by the Articles of Agreement of the IMF was called the ________.

Which of the following facilitates come under Special IMF Facilities?

Which of the following is an example of a central bank that is owned by a national government?

The Board of Governors is the highest authority of the IMF.

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

The Multinational Enterprise

Foreign Investment

Trade in Goods

Services and Labor

Intellectual Property

Sales

Transportation

Financing

Filters