Chapter 7, Problem 2SQ

The primary purpose of the International Monetary Fund is to     exchange one currency for another.     lend foreign currency to member countries.     consolidate the debt facing developing nations.     collect the interest on loans made by the World Bank.

Explain three main reasons Caribbean Islands seek assistance from the International Monetary Fund.

‘Structural adjustment’ programmes require that _________      Governments of poor countries should adopt privatization and other ‘liberalizing’ measures.      Governments of poor countries should have greater involvement in the market economy.      Finance Ministers in under-performing countries should make attempts to revaluate the currency.    States with weak economies should redistribute more resources to the poor.

Inflation-adjusted world commodity prices have been fairly stable over the past several decades. This is because:  A) Falling demand from population growth and economic development is balanced by cheaper/better extraction technology. B) The world has been using fewer commodities. C) We do not know. This is what economists call the "productivity puzzle."  D) Growing demand from population growth and economic development is balanced by cheaper/better extraction technology.

Which of the following is true about the World Bank? OPTIONS: It is a U.N. sponsored agency that specializes in development loans. It is a multinational agency that specializes in development loans. It is a U.S. agency that specializes in development loans. It is made up of all central banks in the world

How is regionalism different from and yet part of globalization? What is the difference between state-to-state regionalism and nonstate regionalism? What triggers various regionalist projects?

When a country moves from reliance on a single commodity (like oil) for export to a larger variety of export commodities, this represents what development strategy?     Globalization     Diversification     Protectionism     Capacity-building

The World Bank was originally the International Bank of Reconstruction and Development that was initially tasked with which of the following? a. Assisting in the decolonization process b. Facilitating private investment and reconstruction c. Encourage consumer spending after World War II d. Aiding the third world after World War II

Identify and explain the Three arguments in Globalization