WGU D080 EXAM SCRIPT WITH VERIFIED
QUESTIONS AND ANSWERS
●● IMF Conditionality
Answer: Requirements a country must meet before receiving IMF loans,
usually involving economic reforms.
●● IMF Quota System
Answer: A system where each member country contributes money based
on its economic size, which determines voting power and access to IMF
resources.
●● Special Drawing Rights (SDR)
Answer: An international reserve asset created by the IMF to supplement
member countries' reserves.
●● Austerity Policies
Answer: Government actions that reduce spending and debt, often
required as part of IMF assistance.
●● Privatization
Answer: Transferring government-owned businesses to private
ownership.
,●● Deregulation
Answer: Reducing government rules and restrictions on businesses.
●● World Bank
Answer: An organization that provides loans and funding for long-term
economic development projects.
●● World Bank Development Loans
Answer: Loans used for infrastructure, education, healthcare, and
poverty reduction projects.
●● AAA Rating
Answer: The highest credit rating, meaning the World Bank can borrow
money at low interest rates.
●● World Trade Organization (WTO)
Answer: Organization that creates international trade rules and settles
trade disputes.
●● Most Favored Nation (MFN)
Answer: A WTO rule requiring countries to treat trading partners
equally.
, ●● Trade Transparency
Answer: Requirement that countries clearly communicate trade policies
and regulations.
●● Uruguay Round
Answer: WTO negotiations that created major trade agreements and
established the WTO.
●● Doha Round
Answer: WTO negotiations focused on improving trade opportunities for
developing countries.
●● Mercantilism
Answer: Economic theory that a country becomes wealthy by exporting
more than it imports and collecting wealth.
●● Neo-Mercantilism
Answer: Modern version of mercantilism where governments protect
industries to increase exports.
●● Absolute Advantage
Answer: When a country can produce a good more efficiently than
another country.
QUESTIONS AND ANSWERS
●● IMF Conditionality
Answer: Requirements a country must meet before receiving IMF loans,
usually involving economic reforms.
●● IMF Quota System
Answer: A system where each member country contributes money based
on its economic size, which determines voting power and access to IMF
resources.
●● Special Drawing Rights (SDR)
Answer: An international reserve asset created by the IMF to supplement
member countries' reserves.
●● Austerity Policies
Answer: Government actions that reduce spending and debt, often
required as part of IMF assistance.
●● Privatization
Answer: Transferring government-owned businesses to private
ownership.
,●● Deregulation
Answer: Reducing government rules and restrictions on businesses.
●● World Bank
Answer: An organization that provides loans and funding for long-term
economic development projects.
●● World Bank Development Loans
Answer: Loans used for infrastructure, education, healthcare, and
poverty reduction projects.
●● AAA Rating
Answer: The highest credit rating, meaning the World Bank can borrow
money at low interest rates.
●● World Trade Organization (WTO)
Answer: Organization that creates international trade rules and settles
trade disputes.
●● Most Favored Nation (MFN)
Answer: A WTO rule requiring countries to treat trading partners
equally.
, ●● Trade Transparency
Answer: Requirement that countries clearly communicate trade policies
and regulations.
●● Uruguay Round
Answer: WTO negotiations that created major trade agreements and
established the WTO.
●● Doha Round
Answer: WTO negotiations focused on improving trade opportunities for
developing countries.
●● Mercantilism
Answer: Economic theory that a country becomes wealthy by exporting
more than it imports and collecting wealth.
●● Neo-Mercantilism
Answer: Modern version of mercantilism where governments protect
industries to increase exports.
●● Absolute Advantage
Answer: When a country can produce a good more efficiently than
another country.
