Download FIS 260 wk 5 CheckPoint: Development of the International

FIS 260 wk 5 CheckPoint: Development of the International Monetary System
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a. International Monetary System - 1914
Institutions and mechanisms to determine currency exchange rates, execute international
trade, and direct the flow of financial capital
b. Gold Standard - 1920
At fixed exchange rates, currencies of countries can be convertible into gold
c. World Bank - mid-1944
International Bank for Reconstruction and Development created to assist the economic
development in progressive countries
d. Bretton Woods System - 1945–1972
International monetary system in which the U.S. dollar was valued in gold and other
exchange rates were perceived to the dollar
e. International Monetary Fund - 1970
Created to promote world trade through monitoring and managing fixed exchange rates and
distributing loans to selected countries with payments issues
f. Flexible Exchange Rates - 1973–Present
A system that consist of currency exchange rates determined by supply and demand
g. European Monetary Union - 1979
An Organization of European countries that agreed to have a common overall monetary
policy; the euro would be the common currency
h. Special Drawing Rights - 1980
Reserve asset created by IMF that consist of a basket of currencies that would be used to
make international payments
i. Euro - 1999
The official currency of the countries in the European Monetary Union
References:
Melicher, R.W. & Norton, E.A. (2005). Introduction to institutions, investments, and
management. (12th ed.). Hoboken, NJ: Wiley.