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IAI Actuarial Core Principles · Business Economics · Recent macroeconomic history

Which pair of institutions was created as a result of the Bretton Woods conference to support the post-war order, and which function was assigned to the first-named body?

The IMF and the World Bank were created at Bretton Woods. The IMF oversees exchange-rate stability and gives short-term balance of payments support, while the World Bank finances post-war reconstruction and later development lending.

  1. AIMF, to oversee exchange-rate stability and provide short-term balance of payments finance; World Bank, to finance reconstruction and developmentCorrect
  2. BWorld Bank, to supervise exchange rates; WTO, to lend for reconstruction
  3. CIMF, to set interest rates for member central banks; BIS, to regulate trade
  4. DOECD, to provide balance of payments finance; IMF, to promote tariff reductions
  5. GATT, to fix parities; IMF, to fund development projects

Explanation

The IMF was established to promote exchange-rate stability and lend to members with temporary payments deficits. The International Bank for Reconstruction and Development (World Bank) financed reconstruction and later development. The other options misassign roles or name bodies not created at Bretton Woods.

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