Can someone pls explain this article of Problems of the International Monetary System and Proposals for Reform —1944-70by CHRISTOPHER L. BACH on the Problems of the International Monetary System on the parts U.S Balance of payments policy, Greater Economic Interdependence, Rigidity of Parity Rates and International Adjustment?

Q: In a monetary union, individual countries cannot do which of the following: Select one: a. Set…

A: Monetary union:-  A monetary union is a pact among different nations to form a monetary union zone.…

Q: Which policy measure is most likely to be effective in reducing a balance of trade deficit? Pick…

A: This situation is also referred as negative trade balance.

Q: Under a gold standard, a. b. a deficit in the balance of payments increased a nation's money supply…

A: The gold standard is a currency measurement system that employs gold to determine the value of…

Q: Under the Bretton Woods system, the organization assigned the task of making loans to countries that…

A: Under the Bretton Woods agreement, US dollar is pegged to gold by a  a fixed exchange rate system.

Q: Which of the following are not a part of capital Account of Balance of Payment a. Foreign Loans b.…

A: As the name implies, a country's balance of payments (BOP) shows how much money has flowed from one…

Q: With regard to international borrowing, what are main differences between official channels and…

A: When the government, household, or any corporation of one country takes a loan or debt from the…

Q: In your opinion what are the reason devalution of Pakistani currency against foreign currency ?

A: Devaluation of currency is the reduction in the value of a country’s local currency as compared to…

Q: What variable makes the relevance/link between loanable funds market and market for foreign-currency…

A: Foreign exchange, is the transformation of one country's cash into another. In a free economy, a…

Q: The Bretton Woods system worked fairly well for a number of years, but it finally broke down over…

A: Bretton Woods System was a monetary management system among world's major industrial states which…

Q: t is argued that the countries which stayed on the Gold standard during the Great Depression were…

A: When two countries with different countries trade with each other, a common medium for the exchange…

Q: The euro area refers to: Select one: a. 15 countries; b. 27 countries; c. all EU countries +…

A: EFTA(European Free Trade Association) is a free trade area. In free trade area (first level of…

Q: intebrnational monetary fund

A: The International Monetary Fund (IMF) is an international monetary organization installed in with…

Q: 1. The World Bank and the IMF are twin intergovernmental pillars supporting the structure of the…

A: The World Bank and the International Monetary Fund (IMF) are two international organizations that…

Q: Why do some developing countries adopt currency boards? Why do others dollarize their monetary…

A: A currency board is a financial authority set up to give coins and notes convertible into an foreign…

Q: A problem with the operation of the gold standard in the world economy was that   a. it involved too…

A: Under the gold standard, the value of the domestic currency is directly linked to gold. Based on the…

Q: Choose the correct answer and give correct explaination 2. Advantages of a flexible exchange rates…

A: In the international market, flexible exchange rate system refers to the changes in the value of a…

Q: What is the main role of the IMF? Group of answer choices To ensure a stable exchange rate regime

A: The International Monetary Fund ( in short IMF) attempts to accomplish supportable development and…

Q: The immediate response to the economic crisis of the 1970’s by many developed economy nations was to…

A: Economic crisis refers to the situation under which the economy is facing a downfall. The downfall…

Q: Using an appropriate diagram of foreign exchange market, explain the concepts of currency…

A: A foreign exchange market is defined as a place where the global exchange of currencies takes place,…

Q: Which was a consequence of the US ending the post-World War II quasi-gold standard in the early…

A: The question is asking about the consequences of the US decision to end the quasi-gold standard in…

Q: The Current Account DOES NOT include: a. Portfolio Investment b. Net income investments in other…

A: The current account is the most significant account in the economy and it is a part of the balance…

Q: notion of purchasing power parity only holds if…

A: Purchasing power parity means that when exchange rate is applied then cost of good in one country be…

Q: In the long run, exchange rates are typically affected by A. bond investors who seek long-term…

A: The exchange rates, in the long run, are affected by the bond investors seeking long-term returns.…

Q: Practice Questions 1. What is meant by the balance of payments? 2. What economic transactions give…

A: The balance of payments is an efficient record of all economic transactions between a country and…

Q: if the Asian countries experience a decline in economic growth ( and experience a decline in…

A: If the Asian countries experience a decline in the economy growth, Asian demand for U.S products…

Q: "Import quotas on capital- intensive industrial goods and subsidies for the import of capital…

A: In order to safeguard indigenous industries and generate manufacturing jobs in emerging nations,…

Q: What was the IMF policy during the 80's

A: Answer- Policies of IMF during 80's :- 1. Concentrated Lending :- In 1980's the imf started…

Q: discuss the qualities if an efficient international monetary system that US should work towards

A: IMS is a set of international agreed rules and the institutions that facilitates for the…

Q: What are the advantages of using gold standard? What is disadvantages? Picture out the economic…

A: The gold standard is a mechanism in which the value of a country's currency is directly related to…

Q: What are some negative effects of borrowing from the IMF?

A: The International Monetary Fund's (IMF) 190 member countries work to promote sustainable growth and…

Q: When a group of countries form a Common Currency (such as the Euro), which of the following is NOT…

A: Common currency like Euro has its own advantages and disadvantages. There are a large number of…

Q: A strong US dollar tends to   A. Reduce exports to foreign buyers   B. Reduce imports…

A: When the dollar value increases, then it makes import cheaper and export costlier. The reason is…

Q: Answer True, False or Uncertain. Brieáy explain your answer. Cooperative stabilization can help…

A: A stabilisation policy is a strategy used by a government to maintain economic stability. It reduces…

Q: Why have some countries rejected the single currencydespite being full members of the European…

A: The European Union is a monetary union of 27 European countries. The association's main aim is to…

Q: Explain the manged floating system and free floating exchange rate system

A: Here, it is required to explain the concept of managed floating system and free floating exchange…

Q: Explain absolute and relative purchasing power parity. Write down their equations Does empirical…

A: Purchasing power parity: It is a rate that determines the exchange rate of two currencies using the…

Q: xplain the effect of devaluation on the Balance of Payments using the Marshall Lerner's Approach…

A: The devaluation of a currency means the purposefully lowering down of a unit of home currency…

Q: The International Financial system and the Future of the Euro What is your assessment on the future…

A: The presentation of the euro is progressively influencing assumptions in the monetary markets around…