Asked by
Natasha Landsberg
on Oct 11, 2024
Verified
Between the end of World War II and 1971,the United States dollar was
A) the only major currency in the world convertible into gold for purposes of international payments.
B) not used as an international currency.
C) the only major currency in the world not backed by gold.
D) not very important in the transfer of goods between countries.
E) undervalued,leading to consistent balance-of-payment deficits.
Gold Convertible
A financial system where a country's currency has a fixed value in terms of gold, allowing it to be exchanged for a specified amount of gold.
Balance-of-Payment Deficits
A situation in the balance of payments where the payments made by a country for its imports, investments abroad, and other outflows are greater than the inflows from exports, foreign investments, etc.
- Describe the historical transition from the gold standard to the current system of currency exchange.
Verified Answer
CP
Learning Objectives
- Describe the historical transition from the gold standard to the current system of currency exchange.