Unformatted text preview: A. the domestic money stock should rise and fall as gold flows in and out of the country. B. the central bank can control the money supply by buying or selling the foreign currencies. C. Both a) and b) 28. Under the gold standard, international imbalances of payment will be corrected automatically under the A. Gresham Exchange Rate regime. B. European Monetary System. C. Price-specie-flow mechanism. D. Bretton Woods Accord. 29. During the period between World War I and World War II, A. the major European powers and the U.S. returned to the gold standard and fixed exchange rates. B. while most countries abandoned the gold standard during World War I, international trade and investment flourished during the interwar period under a coherent international monetary system. C. the U.S. dollar emerged as the dominant world currency, gradually replacing the British pound for the role. D. None of the above....
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- Spring '11
- Exchange Rate, Foreign exchange market, United States dollar