GMS 400 Study Guide - Quiz Guide: Reserve Currency
6 May 2018
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QUIZ 1 Answers.
Purpose of IMF- keep track of exchange rates.
Help countries in economic distress
Why is the IMF so unpopular- Lend money to distressed countries into to give them money. (Throwing a
brick of gold to a drowning person. often dictate policies for the countries they help. Seen as rich
countries exploiting poor countries.
Why is the NK so afraid of the US- still at war technically according to the 1953 treaty. A lot of US troops
i SK. Do’t trust Doald trup. US av vessels. US has ilitar eercises i SK.
Why is NK developing ICBMs- To deliver nuclear warheads to US cities.
What is the VETO power?- 5 permanent members of the Secrurity council that have the power to stop
discussion on any issues.
What is NATO- defend the security of their member states. Initial purpose to defend against soviet
union.
Constitutional Monarchy? King/queen that is subject to a constitution. Not free to do whatever they
want.
Why is China buying bonds?- Save investment for their US currency from the trade.
Why is the Chinese yuan undervalued? Because the Chinese government set it low deliberately to
promote trade. Currency manipulator.
Most popular reserve currency? US dollars
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Document Summary
Purpose of imf- keep track of exchange rates. Why is the imf so unpopular- lend money to distressed countries into to give them money. (throwing a brick of gold to a drowning person. often dictate policies for the countries they help. Why is the nk so afraid of the us- still at war technically according to the 1953 treaty. Why is nk developing icbms- to deliver nuclear warheads to us cities. What is the veto power?- 5 permanent members of the secrurity council that have the power to stop discussion on any issues. What is nato- defend the security of their member states. Why is china buying bonds?- save investment for their us currency from the trade. Because the chinese government set it low deliberately to promote trade.
