Description
which of the following is considered the main reason for IMF establishment?
C. Act as the world central bank (lender of the last resort) since 43 countries tied
their currencies to the US dollar, so countries rely on the IMF in case of Economic
slowdown.
B. Reconstruct countries after World Wars.
D. Increase the trade & fix the exchange rates between the member countries.
Increase the money supply worldwide and that why they introduced their currency
(SDR).
MNE can use balance of payment for all of the following reasons except A. predicting exchange rate movements for international trades.
B. imposition on the BoP will result into lower cash flow.
D. predicts political risk of the foreign country.
C. predicts the foreign country market’s potential since trade deficit for example will result into lower demand from this MNE.
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