Which of the following is a FALSE statement about the International Monetary Fund (IMF)?
A) The IMF was created after the Bretton Woods Conference to help to maintain the international fixed exchange rate system that was introduced.
B) The IMF lends to national governments, initially to maintain the fixed exchange rate system, and today to deal with debt or currency crises.
C) Multinational corporations can get IMF loans if they agree to invest in economies that are internationally perceived as risky and otherwise unlikely to receive direct foreign investment.
D) One of the criticisms of the IMF and other international governmental organizations that deal with the global economy is that their decision making may be biased toward policies that favor industrialized nations.
Question 2 - Even though Mexico is a developing country, the NAFTA market is very rich.
Indicate whether the statement is true or false
Question 3 - It seems likely that economic sanctions ultimately would have led to regime change in Iraq.
Indicate whether the statement is true or false
Question 4 - Soft pegs that are periodically adjusted are called
A) crawling pegs.
B) hard pegs.
C) snakes.
D) managed floats.
Question 5 - Which of the following is FALSE?
A) National sovereignty limits outsiders' ability to change the trade laws and practices of individual nation states.
B) Because of international recognition of national sovereignty, individual nations are unaffected by global trade and capital flows.
C) Foreign investors may not have a legal right to impose policies on a nation state, but the nation state may still experience consequences of poor policies.
D) Because trade policies are laws of individual nations, it is difficult for other nations and international organizations to force changes on unwilling nation states.
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