Which of the Two Features of the IMF Articles of Agreement

question 15

Multiple Choice

Which of the two features of the IMF Articles of Agreement helped promote flexibility in external adjustment?

• A) IMF members helped countries maintain full employment.
• B) IMF allowed countries to attain internal balance.
• C) New countries would enter the agreement if they fixed their exchange rate.
• D) IMF members contributed their currency to form a pool of resources that IMF could lend to countries in need and parities in the exchange rate against the dollar could be adjusted with agreement of IMF.
• E) IMF members argued against the use of floating exchange rates.

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Definitions:

Incremental Net Operating Income

The difference in net operating income between two alternatives.

Depreciated

Refers to the decrease in the value of an asset over time due to wear and tear or obsolescence.

Sales Revenues

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Cash Operating Expenses

The expenses a company incurs during its day-to-day operational activities, paid in cash, such as rent, utilities, and salary payments.