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:

Psychological Capital

A construct that encompasses an individual's positive psychological state of development, characterized by self-efficacy, optimism, hope, and resilience.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Corporate Social Responsibility

A business practice that involves participating in initiatives that benefit society and the environment beyond what is required by law.

Innovation

The process of implementing new ideas, creating unique products, or improving existing services to meet new requirements or market needs.