1) Explain what the world bank and the IMF are and the goals of both? 2) What...

70.2K

Verified Solution

Question

Finance

1) Explain what the world bank and the IMF are and the goals ofboth?
2) What are a fixed exchange rate and a floating exchangerate?
3) If the US Federal Reserve Bank increases the money supply,what happens to the value of the US dollar and the exchangerate?
4) If the US government increases the deflect and the FederalDebt, what happens to the value of the US dollar?
5) When did the US go off of the Gold Standard?
6) Explain the Trilemma.
7) Assume that there is a fixed exchange rate is overvalued,what can the central bank do to defend the currency?
8) What is the difference between a spot and forward exchangerate?
9) What is the current value of the euro and yen exchangerate?
10) If the Euro depreciates relative to the dollar, are Americangoods more or less expensive? Why?

Answer & Explanation Solved by verified expert

4.1 Ratings (637 Votes)

Answer 1World bank and IMF The main goal of IMF to bring the certainty towards international monetary and fiscal system The object of IMF is to bring about effective solution in the matter of crisis period and promote the effective growth plan and its execution to the member countries along with alleviation of poverty The main goal of World bank is to alleviate the extreme poverty in the incoming period and to lessen the percentage of population by implementing effective program and to promote a suitable measurements to ensure the development of growth of the people belong to the society Answer 2 Fixed exchange rate is the nominal exchange rate and floating rate is determined in foreign exchange according to the demand and supply Answer 3 If the demand level remains unchanged and the supply of money increases if affects the See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

1) Explain what the world bank and the IMF are and the goals ofboth?2) What are a fixed exchange rate and a floating exchangerate?3) If the US Federal Reserve Bank increases the money supply,what happens to the value of the US dollar and the exchangerate?4) If the US government increases the deflect and the FederalDebt, what happens to the value of the US dollar?5) When did the US go off of the Gold Standard?6) Explain the Trilemma.7) Assume that there is a fixed exchange rate is overvalued,what can the central bank do to defend the currency?8) What is the difference between a spot and forward exchangerate?9) What is the current value of the euro and yen exchangerate?10) If the Euro depreciates relative to the dollar, are Americangoods more or less expensive? Why?