Under a pure gold standard,
A) exchange rates float most of the time.
B) money is worth more than under other systems.
C) nations must buy and sell gold to settle international obligations.
D) there is no inflationary pressure.
Question 2
Which of the following is NOT a criticism of international institutions such as the IMF, the World Bank, or the WTO?
A) They violate national sovereignty by imposing unwanted domestic policies.
B) They fail to understand the effects of their policies on the vulnerable.
C) Their decision-making is biased in favor of underdeveloped nations.
D) They ignore potentially large adjustment costs for developing nations of implementing their policies.
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