Name: _______________________________________________ Year & Section:_______________________

Modified True or False

_______________1. The IMF was conceived in June 1944 at the United Nations Bretton Woods Conference in New
Hampshire, United States.
_______________2. A general allocation of SDRs must be consistent with the objective of meeting the long-term global
need for reserve assets and requires Board of Governors approval by an 75 percent majority of the total voting power.
_______________3. The Managing Director is the head of the IMF staff and Chair of the Executive Board and is assisted by
four Deputy Managing Directors.
_______________4. The World Bank is like a cooperative, made up of 188 member countries.
_______________5. International Bank of Reconstruction and Development (IBRD) provides funds and guidance to the
private sector for the purpose of helping developing nations stay on a growth trajectory.
_______________6. The World Bank and IMF are headquartered in Washington, D.C.
_______________7. Foreign Portfolio Investment is an investment when the investor invests in a business situated on
foreign land in order to acquire ownership or collaboration.
_______________8. Foreign Direct Investment is an investment made in a foreign economy by an investor with no motive to
gain any role in the management of any organization.
_______________9. Net Foreign Investment (NFI) is also referred to as net capital outflow from the economy.
_______________10. A positive NFI states that the nation is a debtor nation and vice versa.
_______________11. Horizontal FDI is when a company invests internationally to provide input into its core operations—
usually in its home country.
_______________12. Vertical FDI occurs when a company is trying to open up a new market— a retailer, for example, that
builds a store in a new country to sell to the local market.
_______________13.Greenfield FDIs occur when multinational corporations enter into developing countries to build new
factories or stores.
_______________14. A brownfield FDI is when a company or government entity purchases or leases existing production
facilities to launch a new production activity.
_______________15. Governments encourage FDI in their countries as a way to create jobs, expand local technical
knowledge, and decrease their overall economic standards.
_______________16. In order to discourage or restrict FDI, government use various policies and rules such as ownership
restrictions and tax rates and sanctions.
_______________17. Governments seek to promote FPI when they are eager to expand their domestic economy and
attract new technologies, business know-how, and capital to their country.
_______________18. Outward FDI refers to investments coming into the country.
_______________19. Inward FDI are investments made by companies from that country into foreign companies in other
countries.
_______________20. FDI is primarily a long-term strategy.

Name: _______________________________________________ Year & Section:_______________________

Modified True or False

_______________1. The IMF was conceived in June 1944 at the United Nations Bretton Woods Conference in New
Hampshire, United States.
_______________2. A general allocation of SDRs must be consistent with the objective of meeting the long-term global
need for reserve assets and requires Board of Governors approval by an 75 percent majority of the total voting power.
_______________3. The Managing Director is the head of the IMF staff and Chair of the Executive Board and is assisted by
four Deputy Managing Directors.
_______________4. The World Bank is like a cooperative, made up of 188 member countries.
_______________5. International Bank of Reconstruction and Development (IBRD) provides funds and guidance to the
private sector for the purpose of helping developing nations stay on a growth trajectory.
_______________6. The World Bank and IMF are headquartered in Washington, D.C.
_______________7. Foreign Portfolio Investment is an investment when the investor invests in a business situated on
foreign land in order to acquire ownership or collaboration.
_______________8. Foreign Direct Investment is an investment made in a foreign economy by an investor with no motive to
gain any role in the management of any organization.
_______________9. Net Foreign Investment (NFI) is also referred to as net capital outflow from the economy.
_______________10. A positive NFI states that the nation is a debtor nation and vice versa.
_______________11. Horizontal FDI is when a company invests internationally to provide input into its core operations—
usually in its home country.
_______________12. Vertical FDI occurs when a company is trying to open up a new market— a retailer, for example, that
builds a store in a new country to sell to the local market.
_______________13.Greenfield FDIs occur when multinational corporations enter into developing countries to build new
factories or stores.
_______________14. A brownfield FDI is when a company or government entity purchases or leases existing production
facilities to launch a new production activity.
_______________15. Governments encourage FDI in their countries as a way to create jobs, expand local technical
knowledge, and decrease their overall economic standards.
_______________16. In order to discourage or restrict FDI, government use various policies and rules such as ownership
restrictions and tax rates and sanctions.
_______________17. Governments seek to promote FPI when they are eager to expand their domestic economy and
attract new technologies, business know-how, and capital to their country.
_______________18. Outward FDI refers to investments coming into the country.
_______________19. Inward FDI are investments made by companies from that country into foreign companies in other
countries.
_______________20. FDI is primarily a long-term strategy.