chap 9 Flashcards
(5 cards)
1
Q
what is a key function of the international financial market?
A
providing liquidity and capital formation
2
Q
what does the foreign exchange market primarily facilitate?
A
the exchange of one currency for another
3
Q
what exchange rate system is based on market forces of supply and demand?
A
floating exchange rate
4
Q
what was a key feature of the Bretton Woods system?
A
the creation of the International Monetary Fund (IMF) and World Bank
5
Q
which institution provides financial stability and short-term loans to countries facing balance of payment problems?
A
International Monetary Fund (IMF)
