GMS 693 Study Guide - Final Guide: International Monetary Fund, Special Drawing Rights, Bretton Woods System

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 693
• Professor: Michael Manjuris

Document Summary

Imf: promotes the exchange rate stability & facilitates the international flow of currencies. To ensure stability in the international monetary system. To promotes international monetary cooperation & exchange rate stability. To facilitate the balanced growth of international trade. To provide resources to help members in balance-of-payments difficulties or to assist with poverty reduction. The bretton woods agreement: established a par value or benchmark value for each currency, initially it quoted in terms of gold and us dollar. The quota system: when a country joins to imf it contributes a certain sum of money, called a quota, based on its relative size in the global economy. The quota is a pool of money that the imf can draw from to lend countries; it is the basis of how much a country can borrow from imf. Assistance programs: the imf negotiates with a country to provide financial assistance if country agrees to adapt certain policies to stabilize its economy.