The three main elements of the Jamaica Agreement were:
A) the International Monetary Fund was established; gold was abandoned as a reserve asset; and floating rates were declared unacceptable
B) floating rates were declared acceptable; gold was abandoned as a reserve asset; and total annual IMF quotas were increased to $41 billion
C) floating rates were declared unacceptable; the International Monetary Fund was abolished; and the World Bank was established
D) fixed rates were declared acceptable, gold was accepted as a reserve asset; and the total annual IMF quotas were increased to $41 billion
E) all of these answers are correct

Question

Quizplus · Accepted Answer

The three main elements of the Jamaica Agreement were the acceptance of floating exchange rates, the abandonment of gold as a reserve asset, and the increase of total annual IMF quotas to $41 billion. Option A is incorrect as it states that the IMF was established, which is not true as it was established in 1944 under the Bretton Woods Agreement. Options C and D are incorrect as they state opposite statements to what the Jamaica Agreement aimed for. Option E is incorrect as not all the options are correct.

The Three Main Elements of the Jamaica Agreement Were