As a Result of Its Power to Dictate Loan Terms

question 117

Multiple Choice

As a result of its power to dictate loan terms to borrowing countries (under the Bretton Woods system) ,the IMF could encourage ________ countries to pursue ________ monetary policies that would strengthen their currency or eliminate their balance of payments deficits.

• A) surplus; contractionary
• B) surplus; expansionary
• C) deficit; contractionary
• D) deficit; expansionary

---

Definitions:

Recency Effect

The tendency to remember the most recently presented information best, compared to earlier information.

Consistency

The quality of achieving a level of uniformity, reliability, or steadiness in a given context or over time.

Distinctiveness

Distinctiveness is the feature that makes an object, idea, or person stand out from others in comparison, highlighting unique characteristics.

Consensus

General agreement among a group or the collective opinion, judgment, or position of a majority of members within a specific context.