Submit answers to Review Questions 7-1 through 7-7. Answersshould be submitted in Microsoft Word,...

Question

Submit answers to Review Questions 7-1 through 7-7. Answersshould be submitted in Microsoft Word, double-spaced, 1" margins all around, Times New Roman font. Please provide detailed answers to the questions. Simple one sentence answers should not be provided.
7-1.What is the function of the international monetary system?
7-2.Why is the gold standard a type of fixed exchange rate system?
7-3.What was the initial goal of the World Bank?
7-4.Why was the IFC established by the World Bank?
7-5.Why are quotas important to IMF members?
7-6.Why did the Bretton Woods system collapse in 1971?
7-7.Describe the differences between a fixed exchange rate system and a flexible exchange rate system.

Moumita · Accepted Answer

ASSIGNMENT QUESTIONS 
Table of Contents 
Answer 1	3
Answer 2	3
Answer 3	3
Answer 4	3
Answer 5	4
Answer 6	4
Answer 7	4
Works cited	5
Answer 1
The exchange of money around the world is governed by the international monetary system. It is a set of system and rules of money exchange between the countries. Countries have their own currency system (Bui). The international monetary system tries to govern the system of exchange of currency. It estimates the values and the rules of exchange in the different countries. The monetary system of the developing countries is stronger than the developed countries.
Answer 2
The gold standard system is considered to be the fixed exchange rate system. Majority of the countries around the world use the gold standard system to value their currency in terms of a fixed amount of gold. The exchange rate of the gold standard cannot be changed by the intentional market. Hence it is called a fixed exchange rate system. The domestic currencies can be converted into gold at fixed prices.

Submit answers to Review Questions 7-1 through 7-7. Answersshould be submitted in Microsoft Word, double-spaced, 1" margins all around, Times New Roman font. Please provide detailed answers to the...

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