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POS 486 International Political Economy | 70+ Final Exam Q&A | IMF, Trade, Bretton Woods, Debt Crisis | 2025/2026

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This document contains over 70 final exam questions with 100% verified answers for POS 486 – International Political Economy, tailored for the 2025/2026 academic year. It is a comprehensive, up-to-date preparation guide for students tackling complex topics in global finance, trade policy, monetary regimes, and development economics. The questions are presented in a combination of multiple choice, true/false, and fill-in-the-blank formats, addressing core themes such as: Balance of Payments: current and financial accounts, deficits, and adjustments IMF structure, voting power, conditionality, and SDR allocations Currency systems: gold standards, Bretton Woods, floating vs. fixed exchange regimes Debt crises in Latin America and Europe, regulatory capture, and policy responses Key economic theories: Absolute Advantage, Stolper-Samuelson, Gravity Model International institutions and trade policies: GATT, NTBs, reciprocity, Eurocurrencies Each answer is directly matched with its corresponding question, making this document an excellent study tool for exam revision, self-assessment, and classroom discussion. This resource is best suited for: Undergraduate and graduate students in Political Science, Economics, or International Relations Learners studying Global Trade, International Finance, or Public Policy Students preparing for final exams, research discussions, or comparative political economy coursework It also supports cross-disciplinary courses touching on development studies, political theory, and international institutions. Keywords: international political economy, balance of payments, IMF, Bretton Woods, trade policy, SDRs, currency regimes, financial account, Eurocurrency, Triffin dilemma, trade theories, GATT, regulatory capture, debt crisis, exchange rates, NTBs, IMF conditionality, liquidity, fiscal policy

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Uploaded on
October 19, 2025
Number of pages
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Written in
2025/2026
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POS 486 Final Exam 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update



The Current Account Includes - 🧠 ANSWER ✔✔Imports and Exports


Since the 1970s, in regard to the current account, the United States has

generally had - 🧠 ANSWER ✔✔A deficit


The Financial Account includes - 🧠 ANSWER ✔✔portfolio investment


Orthodox liberals advise governments to deal with balance of payments

deficits with - 🧠 ANSWER ✔✔Currency Devaluation


When a state lowers the official value of its currency, it is engaging in - 🧠

ANSWER ✔✔Devaluation


In the interwar period (between World Wars I and II), the world had - 🧠

ANSWER ✔✔A gold standard and floating exchange rates

, The type of monetary regime arranged at the Bretton Woods conference is

best described as: - 🧠 ANSWER ✔✔A gold exchange standard


Which country has the most votes in the IMF? - 🧠 ANSWER ✔✔Japan


The Triffin Dilemma in regard to reserve assets refers to conflict between -

🧠 ANSWER ✔✔The liquidity and confidence functions.


The emergence of the Eurocurrency market is linked to what event: - 🧠

ANSWER ✔✔the détente period of the Cold War.


SDRs (Special Drawing Rights): - 🧠 ANSWER ✔✔are allocated in

proportion to a country's IMF quota.

The "Unholy Trinity" today involves a trade-off between: - 🧠 ANSWER

✔✔fixed exchange rates and policy autonomy.


Misalignment refers to exchange rates that have: - 🧠 ANSWER ✔✔moved

from their market value.


Eurocurrencies are: - 🧠 ANSWER ✔✔national currencies located in banks

outside the home country.

The origins of the European Union date from what decade: - 🧠 ANSWER

✔✔1950s.

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