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The international monetary system (good) is a system that works to increase international trade and investment flows and work on the distribution of the benefits of trade between nations fairly. And usually resides on the basis of three criteria:
Patch
And liquidity
And trust.
The correction refers to the way in which to address the imbalance in the balance of payments, is a good system that reduces the cost and time needed to correct the imbalance to a minimum. Liquidity refers to the amount of available international reserve assets necessary to settle the temporary imbalance in the balance of payments, which is a good system provides adequate international reserves, which will enable States to correct the deficit in the balance without access contraction in the economy. The trust refers to the perception that the correction mechanism to operate efficiently and international reserves will maintain the absolute and relative value.
well, answered by Mr. George
International Monetary Fund or IMF evaluate the condition of the country base on its economic stability and its currency and give its ranking. The good thing of its evaluation is it help the know the position of the country i internationally. Based on its evaluation the IMF and the World Bank suggests measures and provide monetary help to those economics who are in crisis and helps to rebuild the economy.
Many financial institution and multinational companies relies on the IMF data to decide whether to invest, finance or setup their companies in the respective countries.
The international monetary system known as the rules and norms and means and facilities and regulations that affect the international payments group. There are two categories of the system are:1. classified according to the way that is determined under which the exchange rate, there is said system to a fixed rate, or a fixed exchange rate system with a narrow range of fluctuations around the nominal value, or a wide range of fluctuations, or floating exchange rate orbit system, or a floating exchange rate system free, or exchange rate system adaptable
2. classified according to the formula adopted by international reserves, which, it is said there is a gold standard - when the gold is the only international reserves, or full confidence in one of the base currency of exchange to the dollar as a base without there being any relationship with gold, base exchange or gold which is a mixture between the former two systems.
The international monetary system (good) is a system that works to increase international trade and investment flows and work on the distribution of the benefits of trade between nations fairly. And reside usually based on three criteria: the patch and liquidity Liquidity Adjustment and confidence Confidence. The correction refers to the way in which to address the imbalance in the balance of payments, is a good system that reduces the cost and time needed to correct the imbalance to a minimum. Liquidity refers to the amount of available international reserve assets necessary to settle the temporary imbalance in the balance of payments, which is a good system provides adequate international reserves, which will enable States to correct the deficit in the balance without access contraction in the economy. The trust refers to the perception that the correction mechanism to operate efficiently and international reserves will maintain the absolute and relative value.
agreed with all .....................................
Agreed with the answer, Mr. George
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