The sole purpose of the international monetary system is to
A) maximize the profits of MNCs.
B) protect the rights of home countries of MNCs.
C) protect the rights of host countries of MNCs.
D) control and regulate the currencies of countries.
E) facilitate international economic exchange.

Question

Quizplus · Accepted Answer

The sole purpose of the international monetary system is to facilitate international economic exchange. Its main function is to provide a mechanism for exchanging one currency for another and to enable the flow of capital from one country to another. It also provides a framework for ensuring macroeconomic stability and preventing economic imbalances among countries. Maximizing the profits of MNCs, protecting the rights of home or host countries of MNCs, and controlling currencies of countries are not the sole purposes of the international monetary system.

The Sole Purpose of the International Monetary System Is to