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15 Cards in this Set
- Front
- Back
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International Monetary System
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The rules, customs, instruments, facilities, and organizations for effecting international payment
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Adjustment
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The process by which balance of payments disequilibria are corrected
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Liquidity
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The amount of international reserve assets available to nations to settle temporary balance of payments disquilibria
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Confidence
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knowledge that the balance of payments mechanism is working adequately and that international reserves will retain their absolute and relative values
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International Monetary Fund (IMF)
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Institution created under the Bretton Woods System for the purposes of 1. Overseeing that nations followed a set of agreed upon rules of conduct in international trade and finance and 2. providing borrowing facilities for nations in temporary balance of payments difficulties.
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Bretton Woods System
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The gold-exchange standard that operated from the end of WWII until 1971
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Intervention Currency
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A convertible national currency (primarily in US dollars) used by foreign exchange markets in order to keep the exchange rate from moving outside the allowed or desired range of fluctuation
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Fundamental Disequilibrium
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Large and persistent balance of payments deficits or surpluses
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Currency Convertibility
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Ability to exchange one national currency for another without any restriction or limitation
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International Bank for Reconstruction and Development (World Bank)
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Established after WWII to provide long-run development assistance to developing nations
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International Development Association (IDA)
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The affiliate of International Bank for Reconstruction and Development set up to make loans at subsidized rates to poorer developing countries
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International Finance Coorporation
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Affiliate of the International Bank for Reconstruction and Development set up in 1956 to stimulate private investments in developing nations from indigenous and foreign sources
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Gold Tanche
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The 25% of a nations quota in the IMF that the nation was originally required to pay in gold and could then borrow from the Fund almost automatically
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Credit Tranches
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The amounts that a member nation could borrow from the IMF, subject to conditions, over and above the gold tranche
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Net IMF Position
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The size of a nations quota in the IMF minus the Funds holding of the nations currency
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