ECONOMICS
FINANCIAL MARKETS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Gold was declared as a reserve asset.
|
|
|
Fixed rates were declared acceptable.
|
|
|
Floating rates were declared acceptable.
|
|
|
None of the above
|
Detailed explanation-1: -Which of the following changes were made to the International Monetary Fund’s Articles of Agreement in the Jamaica agreement? IMF members were permitted to sell their gold reserves at the market price.
Detailed explanation-2: -The main elements of the Jamaica agreement include the following: ∙ Floating rates were declared acceptable. IMF members were permitted to enter the foreign exchange market to even out “unwarranted” speculative fluctuations. ∙ Gold was abandoned as a reserve asset.
Detailed explanation-3: -The agreement was concluded after meetings 7–8 January 1976 at Kingston, Jamaica by a committee of the board of governors of the IMF. The accords allowed the price of gold to float with respect to the U.S. dollar and other currencies, albeit within a set of agreed constraints.
Detailed explanation-4: -6. Why did the IMF insist on the devaluation of Jamaican currency and what has been the impact on the Jamaican economy and the people of Jamaica? To decrease imports and increase exports. Benefits wealthier countries, but in Jamaica everything locally produced became very expensive and debt increased.