Questions 1-10 are worth 4 pts each, Question 11 is worth 10 pts.

1. In 1987, during the ________ Accord, the finance ministers of the Group of Five agreed that exchange rates had been realigned sufficiently and pledged to support the stability of exchange rates around their current levels by intervening in the foreign exchange markets when necessary to by and sell currency.

2. The Bretton Woods System of fixed exchange rates collapsed in 1973, and since then we have had a __________.

3. The great strength claimed for the gold standard was that it contained a powerful mechanism for simultaneously obtained ______ for all countries.

4. In 1971, U.S. trade figures showed that for the first time since 1945, the United States was importing more than it was exporting. This set off massive purchases of:
   a. U.S. dollars
   b. German deutsche marks
   c. Canadian dollars
   d. Mexican Pesos

5. When discussion on the Bretton Woods system commenced, there was general consensus that:
   a. Fixed exchange rates were desirable
   b. Floating exchange rates were desirable
   c. Pegged Exchange rates were desirable
   d. International currency trade was desirable

6. When a country’s exchange rate is allowed to fluctuate against other currencies within a target zone, it is operating under a(n):

7. The task of the ______ was to maintain order in the international monetary system, and that of the ______ was to promote general economic development.

8. Which of the following is NOT a common criticism of the IMF
   a. Inappropriate policies
   b. More beneficial to rich countries than poor countries
   c. Moral hazard
   d. Lack of accountability

9. Under the ______, resources are raised through subscriptions from wealthy member countries, and loans go to the poorest countries. Borrowers have 50 years to repay at an interest rate of 1 percent a year.

10. The Bretton Woods conferences occurred in _______ and established the basic framework for the post – World War II international monetary system

11. Why was what happened at Bretton Woods important to establishing an international monetary system?