Of the Following,which Is NOT a Key Principle of the Jamaica

question 31

Multiple Choice

Of the following,which is NOT a key principle of the Jamaica Agreement?

• A) Members could adopt their own exchange systems.
• B) A system of global fixed exchange rates would only be implemented if approved by a vote of 85 percent of membership.
• C) Gold would no longer be a common denominator of the monetary system.
• D) The SDR created by the IMF was recommended as the primary reserve asset of the international monetary system.
• E) All countries would adopt the European Exchange Rate Mechanism.

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Definitions:

Risk Averse

A description of an individual or entity that prefers to avoid risk and would choose a certain outcome over a gamble with a potentially higher, but uncertain, return.

Portfolio

A group of investment vehicles comprising stocks, bonds, commodities, as well as cash and its equivalents, together with mutual funds and ETFs.

Adverse Selection

Adverse selection refers to a situation where sellers have information that buyers do not, or vice versa, about some aspect of product quality.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or utility.