gold was the fundamental standard of value based on the ability of the US to maintain the parity of $35 per ounce

it replaced sterling which had been the silver exchange standard

all central banks exchanged their foreign exchange reserves for gold to become members of the system.

gold could be exchanged between countries, all other capital was controlled.

sterling was overvalued and the French franc was undervalued leading to a loss of gold reserves by Great Britain

the growth of the global economy brought with it a demand for dollars to be held as international reserves that exceeded the US gold reserves

the World Bank was underfunded by member central banks.

it was too weak to survive simultaneous speculative attacks on the Italian and UK currencies in 1992

to provide emergency loans to countries facing balance of payments problems

to monitor macroeconomic developments continuously in member countries

to serve as the world central bank

to provide a line of credit for each member country.

(A) floating; (B) capital controls

(A) floating; (B) free capital mobility

(A) fixed; (B) capital controls

(A) fixed; (B) free capital mobility

a credit line allocated by the IMF to member countries according to each country’s quota.

backed by US dollars

the IMF’s unit of accoun

a basket of four currencies