WGU D080 EXAM MASTER REVIEW SET 2026
◉ balance of payments. Answer: The difference in total value
between payments into and out of the country over a period of time
◉ fixed-rate currency exchange system. Answer: When a country's
currency value is fixed or pegged by a monetary authority against
the value of another currency, a basket of currencies, or another
measure of value
◉ World Bank. Answer: ~ Encourages developing countries to
borrow for development projects
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused
on supporting developing countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member
nations
,~ Borrows and loans
~ Borrowers must meet requirements to qualify for loans
◉ International Monetary Fund. Answer: ~ Oversees the
international monetary system
~ Cooperative institution
~ In phase one, prior to 1973, regulated international exchange
rates
In phase two, post-1973, provides a means for effective international
currency exchange, supervises economic policies, and provides
financial assistance to members
~ Small: 2,300 staff members
~ Resources come from quota subscriptions or membership fees
~ Acts more like a credit union
~ Loans to all member nations
,◉ Which activity of the International Monetary Fund (IMF) impacts
policymaking?. Answer: Being owned and directed by the
governments of the member nations
◉ What is a characteristic of the International Monetary Fund
(IMF)?. Answer: The IMF is a cooperative institution and provides
more effective currency exchange.
◉ What was the initial purpose of the International Monetary Fund
(IMF) in phase one, prior to 1973?. Answer: Regulated currency
exchange between nations
◉ privatization. Answer: Selling government holdings to private
companies
◉ deregulation. Answer: The removal of regulations or restrictions
in a particular industry
◉ How does the International Monetary Fund (IMF) impact
international organizations and governments?. Answer: It reduces
funding for social programs.
◉ AAA ratings. Answer: The highest possible rating that may be
assigned by a credit rating agency for a bond
, ◉ debt instruments. Answer: A tool used by a company or any other
entity to raise money or capital
◉ What is a common name for the International Bank for
Reconstruction and Development?. Answer: World Bank
◉ What was the first loan that the World Bank made after the end of
World War II?. Answer: To France to rebuild its infrastructure
◉ Which criticism is associated with the World Bank?. Answer: The
developed countries such as the U.S. and Europe have too much
control over its decisions.
◉ Which criticism is made about the World Bank?. Answer: It does
not consider how funding projects will affect the environment.
◉ The World Bank provides. Answer: low-interest loans, interest-
free credits, and conditional grants to developing countries in which
a government (or sovereign) guarantees repayment.
◉ The World Bank Group is comprised of. Answer: private lending
banks as well as the World Bank.
◉ balance of payments. Answer: The difference in total value
between payments into and out of the country over a period of time
◉ fixed-rate currency exchange system. Answer: When a country's
currency value is fixed or pegged by a monetary authority against
the value of another currency, a basket of currencies, or another
measure of value
◉ World Bank. Answer: ~ Encourages developing countries to
borrow for development projects
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused
on supporting developing countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member
nations
,~ Borrows and loans
~ Borrowers must meet requirements to qualify for loans
◉ International Monetary Fund. Answer: ~ Oversees the
international monetary system
~ Cooperative institution
~ In phase one, prior to 1973, regulated international exchange
rates
In phase two, post-1973, provides a means for effective international
currency exchange, supervises economic policies, and provides
financial assistance to members
~ Small: 2,300 staff members
~ Resources come from quota subscriptions or membership fees
~ Acts more like a credit union
~ Loans to all member nations
,◉ Which activity of the International Monetary Fund (IMF) impacts
policymaking?. Answer: Being owned and directed by the
governments of the member nations
◉ What is a characteristic of the International Monetary Fund
(IMF)?. Answer: The IMF is a cooperative institution and provides
more effective currency exchange.
◉ What was the initial purpose of the International Monetary Fund
(IMF) in phase one, prior to 1973?. Answer: Regulated currency
exchange between nations
◉ privatization. Answer: Selling government holdings to private
companies
◉ deregulation. Answer: The removal of regulations or restrictions
in a particular industry
◉ How does the International Monetary Fund (IMF) impact
international organizations and governments?. Answer: It reduces
funding for social programs.
◉ AAA ratings. Answer: The highest possible rating that may be
assigned by a credit rating agency for a bond
, ◉ debt instruments. Answer: A tool used by a company or any other
entity to raise money or capital
◉ What is a common name for the International Bank for
Reconstruction and Development?. Answer: World Bank
◉ What was the first loan that the World Bank made after the end of
World War II?. Answer: To France to rebuild its infrastructure
◉ Which criticism is associated with the World Bank?. Answer: The
developed countries such as the U.S. and Europe have too much
control over its decisions.
◉ Which criticism is made about the World Bank?. Answer: It does
not consider how funding projects will affect the environment.
◉ The World Bank provides. Answer: low-interest loans, interest-
free credits, and conditional grants to developing countries in which
a government (or sovereign) guarantees repayment.
◉ The World Bank Group is comprised of. Answer: private lending
banks as well as the World Bank.
