The System That Resulted from the Arrangements That Came from the IMF

question 6

Multiple Choice

The system that resulted from the arrangements that came from the IMF intervention in the East Asian financial crisis in the late 1990s has come to be called "Bretton Woods II" because

• A) US trade surpluses currently drive growth in East Asia, just as they drove early postwar growth in Europe.
• B) the system is stable as long as East Asian countries are willing to accumulate US government securities like Europeans did with U.S. gold.
• C) US trade deficit drives growth in East Asia, and floating exchange rate stabilize the value of the dollar.
• D) the system is stable as long as East Asian countries are willing to accumulate US gold like Europeans did.
• E) the system is still based on fixed exchange rates and IMF interventions.

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Definitions:

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Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunication equipment, and missiles worldwide.

Institutional Investor

An organization, such as a bank, pension fund, mutual fund, or insurance company, that invests large sums of money into the financial markets.

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