The functions of the World Bank evolved in response to... the increase in protectionism. the creation of the Marshall Plan. O the shift to floating exchange rates. O the competitive devaluation of currencies.
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- What has been the role of IMF loans in international affairs addresing financial crisis? Why are they so controversial?During crises like the COVID-19 crisis, major currencies such as U.S. Dollar and Euro should appreciate against currencies associated with developing countries. Do you agree with this statement? Discuss. Your answer should be linked to different concepts (e.g., PPP, IRP, IFE, and currency hedging)1. describe and explain how the monetary system much of the trading world knew in 1800 evolved into the prevailing system today. 2. discuss the merits of returning to a gold standard. What step might be taken to move in that direction? 3. describe and explain using specific example what a central bank is and what its exchange control authority means.
- What is the function of the international money markets? Briefly describe the reasons for the development and growth of the European money market.International banking is both necessary and sufficient for financial development and stability, especially for developing countries. Is the statement true?1. A. Identify and explain the functions of financial intermediation. B. Why does the lack of an efficient and effective system of financial intermediation act as an impediment to the economies in developing countries (comprehensive answer required)?
- Why would the U.S. government consider reinstitutingthe “wall” between investment banking and commercialbanking?Explain the managed floating exchange rate regime. How can the monetary authorities prevent effects of these exchange rate regime on money supply level and why the most of the emerging countries prefer to use this policy?For each of the following monetary policy tools:A. The BSP buys securities in the open market.B. The BSP sells foreign exchange currentC. The BSP increases the reserve requirement ratio.D. The BSP applies its moral suasion ability requesting commercial banks to lowerdown interest rates.E. The government decided to deposit funds at the BSP.1. Determine whether the monetary tool imposed by the BSP is an expansionary or acontractionary policy.
- Monetary policy in Australia is implemented by the Reserve Bank, and currently is principally directed towards: A: affecting the level of short-term interest rates B: effecting a reduction in the current account deficit C: affecting the level of growth in the money supplyAs foreign exchange activity has grown, a given degree of central bank intervention has become: A. more effective. B. more frequent. C. none of these D. less effective.1.One proposal to stabilize the international monetary system involves setting exchange rates at their purchasing power parity rates. Once exchange rates are correctly aligned (according to PPP), each nation would adjust its monetary policy so as to maintain them. What problems might arise from using the PPP rate as a guide to the equilibrium exchange rate?