ECS3701 Assignment 1 (QUIZ) Semester 1 2023 Questions and Answer Distinction A+

Why did nixon close the "gold window" ? - -Because the United States did not have enough gold to meet claims from outstanding dollars; Capital began to flow out of US dollar assets into marks and yen; market price of gold rose above US35$ per ounce -What can IMF members do for assistance if they encounter balance of payments difficulties? - -Borrow from the IMF automatically up to 40% quota -What procedure does the IMF follow in terms of lending to a member country? - -purchase repurchase agreement -What are some of the danger signs that indicate a country could be vulnerable to an old fashioned balance of payments and currency crisis? - -persistent balance of payments under fixed exchange rate settlements depleting international international reserves high interest rates 4 short term capital government deficits