This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Both A and B are correct. The dominant world currency since the end of World War I has been the Answer Selected Answer: U.S. dollar. One advantage of the European Monetary Union (EMU) is Answer Selected Answer: reduced transaction costs and the elimination of exchange–rate uncertainty. Suppose the United States and Great Britain are on the gold standard and the price of gold in the U.S. is fixed at $100 per ounce and the price of gold in Britain is fixed at £50 per ounce. What exchange rate should prevail between the dollar and the pound? Answer Selected Answer: £1 = $2 Which of the following is true since the introduction of a single European currency? Answer Selected Answer: National currencies such as the French franc and German mark are no longer independent currencies. The euro is now the sole legal tender in these countries....
View Full Document
- Fall '13
- Exchange Rate, United States dollar