Chap002 39 - Topic: Evolution of the International Monetary...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
40. Under the Bretton Woods system, each country was responsible for maintaining its exchange rate within ± 1 percent of the adopted par value by A. buying or selling foreign exchanges as necessary. B. buying or selling gold as necessary. C. expanding or contracting the supply of loanable funds as necessary. D. increasing or decreasing their money supply as necessary. Topic: Bretton Woods System: 1945-1972 Topic: Evolution of the International Monetary System 41. Under the Bretton Woods system, A. the U.S. dollar was the only currency that was fully convertible to gold; other currencies were not directly convertible to gold. B. all currencies of member states were fully convertible to gold. C. all currencies of member states were fully convertible to gold or silver. D. none of the above. Topic: Bretton Woods System: 1945-1972
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Topic: Evolution of the International Monetary System 42. In 1963, President John Kennedy imposed the Interest Equalization Tax (IET) on U.S. purchases of foreign securities. The IET was designed to A. decrease the cost of foreign borrowing in the U.S. bond market. B. increase the cost of foreign borrowing in the U.S. bond market. Topic: Bretton Woods System: 1945-1972 Topic: Evolution of the International Monetary System 43. The growth of the Eurodollar market, which is a transnational, unregulated fund market A. was encouraged by U.S. legislation designed to stem the outflow of dollars from the U.S. B. was discouraged by U.S. legislation designed to stem the outflow of dollars from the U.S. Topic: Bretton Woods System: 1945-1972 Topic: Evolution of the International Monetary System...
View Full Document

This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

Ask a homework question - tutors are online