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

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Definitions:

Cognitions

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when evaluating others' behaviors.

Detect Causes

The process of identifying factors or conditions that lead to the occurrence of a particular event or phenomenon.

Stereotypes

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing, which often do not reflect reality.