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Question # 03 (04 + 03 + 03 Marks) Today's world economy looks dramatically different from that of 20 years ago, primarily due to the

Question # 03 (04 + 03 + 03 Marks)

Today's world economy looks dramatically different from that of 20 years ago, primarily due to the evolution of international capital markets.

i)-Discuss and compare the role of International Monetary Fund with that of World Bank.

ii)- Differentiate sterilized foreign exchange intervention from unsterilized intervention.

iii)- What steps should an international lender of last resort take to limit moral hazard?

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