Question 1

Which of the following facilitates come under Special IMF Facilities?

Accepted Answer

A)   reserve tranche
B)   Special Arrangements
C)   Concessional IMF Facility
D)   Contingent Credit LinesE) A) and B)
F) A) and C)

Question 2

The IMF's _______ consists of that share of a member state's quota that it did not contribute in its own currency.

Accepted Answer

A)   Standby Arrangement
B)   Extended Fund Facility
C)   reserve tranche
D)   credit trancheE) A) and B)
F) C) and D)

Question 3

Which of the following parts of the IMF gives the final approval for the quota a state seeking to join the IMF should pay?

Accepted Answer

A)   member states having at least 85 per cent of the total vote share
B)   all the member nations of the IMF
C)   the IMF Board of Governors
D)   the IMF Executive BoardE) C) and D)
F) B) and D)

Question 4

Which of the following is an example of a central bank that is owned by a national government?

Accepted Answer

A)   the Bank of England
B)   the Central American Monetary Union
C)   the World Bank
D)   the Arab Monetary FundE) A) and B)
F) A) and C)

Question 5

Private money is a unit of exchange issued by a government agency (such as a treasury department) or government-controlled financial institution (such as a central bank).

Accepted Answer

A) True 
 B)False  False

Question 6

In an option contract, if the right is to make a sale, the option is known as a ________.

Accepted Answer

A)   spread eagle
B)   straddle
C)   call
D)   putE) A) and D)
F) None of the above

Question 7

Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________.

Accepted Answer

A)   checking accounts
B)   asset accounts
C)   Eurocurrency deposits
D)   recurring depositsE) B) and D)
F) A) and B)

Question 8

One of the functions of a central bank is regulating the quantity of money in circulation.

Accepted Answer

A) True 
 B)False

Question 9

In an option contract, if the right is to buy a commodity, the option is known as a call.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of private money?

Accepted Answer

A)   It can only be used for making payments between private parties who agree in advance to its use.
B)   It cannot consist of any other sort of transferable material but official money.
C)   It can be used to pay public debts.
D)   It is an example of reserve currency.E) B) and D)
F) A) and D)

Question 11

The currency exchange mechanism established in 1945 by the Articles of Agreement of the IMF was called the ________.

Accepted Answer

A)   gravity model of trade
B)   par value system
C)   gold exchange standard
D)   gold bullion standardE) A) and D)
F) A) and C)

Question 12

A(n)  ________ is a three-party instrument on which the drawer makes an unconditional order to a drawee to pay a named payee.

Accepted Answer

A)   allonge
B)   bill of exchange
C)   letter of credit
D)   certificate of depositE) B) and D)
F) A) and C) B

Question 13

Which of the following is true of the International Fund for Agricultural Development (IFAD) ?

Accepted Answer

A)   It is considered to be the developmental arm of the IMF.
B)   It is primarily concerned with funding projects concerning global environmental problems.
C)   Its membership is limited to the members of the Global Environmental Facility.
D)   Its membership is open to any member of the UN.E) A) and B)
F) None of the above

Question 14

Which of the following meetings was instrumental in the creation of the International Monetary Fund?

Accepted Answer

A)   the Potsdam Conference
B)   the Solvay Conference
C)   the Bretton Woods Conference
D)   the Second Quebec ConferenceE) A) and B)
F) A) and C)

Question 15

What is the role of the International Development Agency (IDA) and the International Finance Corporation (IFC) in connection with the World Bank?

Accepted Answer

The IDA and the IFC are subsidiaries of ...

Question 16

Which of the following is a relation between the World Bank and the Global Environment Facility (GEF) ?

Accepted Answer

A)   The World Bank is responsible for managing the Trust Fund of the GEF.
B)   The World Bank determines what projects will be funded by the GEF.
C)   The GEF only funds nations that are members of the World Bank.
D)   The GEF is considered as the primary developmental arm of the World Bank.E) A) and B)
F) C) and D) A

Question 17

The Board of Governors is the highest authority of the IMF.

Accepted Answer

A) True 
 B)False

Question 18

When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________.

Accepted Answer

A)   commercial bank
B)   central bank
C)   reserve bank
D)   correspondent bankE) A) and B)
F) All of the above

Question 19

The Bank for International Settlements does not provide bridging loans.

Accepted Answer

A) True 
 B)False

Question 20

The ________ is an intergovernmental organization, headquartered in Basel, which functions as a bank for the world's central banks.

Accepted Answer

A)   International Monetary Fund
B)   World Bank
C)   Bank for International Settlements
D)   World Trade OrganizationE) A) and C)
F) C) and D)

Exam 6: Money and Banking

Which of the following facilitates come under Special IMF Facilities?

Correct AnswerverifiedShow Answer

The IMF's _______ consists of that share of a member state's quota that it did not contribute in its own currency.

Correct AnswerverifiedShow Answer

Which of the following parts of the IMF gives the final approval for the quota a state seeking to join the IMF should pay?

Correct AnswerverifiedShow Answer

Which of the following is an example of a central bank that is owned by a national government?

Correct AnswerverifiedShow Answer

Private money is a unit of exchange issued by a government agency (such as a treasury department) or government-controlled financial institution (such as a central bank).

Correct AnswerverifiedFalse

In an option contract, if the right is to make a sale, the option is known as a ________.

Correct AnswerverifiedShow Answer

Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________.

Correct AnswerverifiedShow Answer

One of the functions of a central bank is regulating the quantity of money in circulation.

Correct AnswerverifiedShow Answer

In an option contract, if the right is to buy a commodity, the option is known as a call.

Correct AnswerverifiedShow Answer

Which of the following is true of private money?

Correct AnswerverifiedShow Answer

The currency exchange mechanism established in 1945 by the Articles of Agreement of the IMF was called the ________.

Correct AnswerverifiedShow Answer

A(n) ________ is a three-party instrument on which the drawer makes an unconditional order to a drawee to pay a named payee.

Correct AnswerverifiedB

Which of the following is true of the International Fund for Agricultural Development (IFAD) ?

Correct AnswerverifiedShow Answer

Which of the following meetings was instrumental in the creation of the International Monetary Fund?

Correct AnswerverifiedShow Answer

What is the role of the International Development Agency (IDA) and the International Finance Corporation (IFC) in connection with the World Bank?

Correct AnswerverifiedThe IDA and the IFC are subsidiaries of ...View AnswerShow Answer

Which of the following is a relation between the World Bank and the Global Environment Facility (GEF) ?

Correct AnswerverifiedA

The Board of Governors is the highest authority of the IMF.

Correct AnswerverifiedShow Answer

When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________.

Correct AnswerverifiedShow Answer

The Bank for International Settlements does not provide bridging loans.

Correct AnswerverifiedShow Answer

The ________ is an intergovernmental organization, headquartered in Basel, which functions as a bank for the world's central banks.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The IDA and the IFC are subsidiaries of ...
View Answer

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified