Chap002 33 - dollars? A. $29.40 B. $30.00 C. $0.83 D. $1.20...

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21. Under a gold standard, if Britain exported more to France than France exported to Great Britain, A. such international imbalances of payment will be corrected automatically. B. this type of imbalance will not be able to persist indefinitely. C. net export from Britain will be accompanied by a net flow of gold in the opposite direction. D. all of the above Topic: Classical Gold Standard: 1875-1914 Topic: Evolution of the International Monetary System 22. Suppose that Britain pegs the pound to gold at six pounds per ounce, whereas the exchange rate between pounds and U.S. dollars is $5 = £1. What should an ounce of gold be worth in U.S.
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Unformatted text preview: dollars? A. $29.40 B. $30.00 C. $0.83 D. $1.20 Topic: Classical Gold Standard: 1875-1914 Topic: Evolution of the International Monetary System 23. During the period of the classical gold standard (1875-1914) there were A. highly volatile exchange rates. B. volatile exchange rates. C. moderately volatile exchange rates. D. stable exchange rates. E. no exchange rates. Topic: Classical Gold Standard: 1875-1914 Topic: Evolution of the International Monetary System...
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