Under the Bretton Woods System each participating country had to:
A. adopt capital controls.
B. be willing to exchange their own currency for gold.
C. hold ample reserves of currency of each of the participating countries.
D. stand ready to exchange its own currency for U.S. dollars at a fixed exchange rate.
Answer: D
You might also like to view...
Refer to Figure 8.2. At P = $80, the profit-maximizing output in the short run is
A) 22. B) 34. C) 39. D) 50. E) 64.
Which of the following essential factors enables commercial banks to create money?
a. Required reserves b. Excess reserves c. State and local government securities d. U.S. government securities e. Net worth
When the Fed lowers the growth rate of the money supply, it must take into account
a. only the short-run effect on production. b. only the short-run effects on inflation and production. c. only the long-run effect on inflation. d. the long-run effect on inflation as well as the short-run effect on production.
The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false