To Maintain Fixed Exchange Rates When Countries Had Balance of Payments

question 7

Multiple Choice

To maintain fixed exchange rates when countries had balance of payments deficits and were losing international reserves,the ________ would loan ________ countries international reserves contributed by other members.

• A) IMF; deficit
• B) IMF; surplus
• C) World Bank; deficit
• D) World Bank; surplus

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Definitions:

Shunt Field

A winding in electrical machinery, placed in parallel with the armature, used to create a constant magnetic field.

Armature

A component of electric machines, typically rotating, that acts in conjunction with a magnetic field to produce electrical energy (in a generator) or mechanical energy (in a motor).

Servomotor

A motor used for precise position control.

Fiberglass

A reinforced plastic material composed of glass fibers embedded in a resin matrix, known for its strength and durability.