Two major features of the International Monetary Fund (IMF) Articles of Agreement fostered flexibility within the monetary system.These features included IMF lending facilities and:
A)IMF export assistance
B)fixed parties
C)a return to the gold standard
D)adjustable parities
E)externally imposed monetary discipline

Question

Quizplus · Accepted Answer

The IMF Articles of Agreement allowed for adjustable parities, which meant that member countries could adjust the value of their currencies in relation to the U.S. dollar and other currencies with IMF approval. This allowed for flexibility in the monetary system and helped to prevent countries from experiencing prolonged periods of overvaluation or undervaluation of their currencies. The other choices do not accurately reflect the features of the IMF Articles of Agreement that fostered flexibility within the monetary system.

Two Major Features of the International Monetary Fund (IMF) Articles