Question 7 of 10 One advantage of the Gold Standard is: O A.Fluctuation in excha

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Question 7 of 10 One advantage of the Gold Standard is: O A.Fluctuation in exchange rates BNone of the above C,Stability in exchange rates O D·Flexibility in exchange rates Reset Selection Question 8 of 10 The reasons for breakdown of Bretton Woods were: O A.The overhang of dollars overseas B.the run on us gold reserves OC.the closure of the US Gold Window O D.All of the above Reset Selection Question 9 of 10 Since the breakdown of Bretton Woods we have: AA flexible exchange rate regime with dollar and Euro as the lead currencies BA fixed exchange rate regime led by Euro O C.A fixed exchange rate regime with Euro as lead currency O D.A fixed exchange rate regime with dollar as lead currency Reset Selection Question 10 of 10 A flexible exchange rate regime has the following advantages: ALeaves room for domestic monetary policy measures B.Acts as a countercyclical influence helping domestic monetary policy O C.Both A&B; O D-Neither A nor B Reset Selection

Explanation / Answer

Q7: Option (c). The exchange is pegged against gold units.

Q8: option (d) is correct. All of these led to the fall of Bretton woods.

Q9: option (a), the exchange rate is determined by the supply and demand in the foreign exchange market and is no longer fixed.

Q10: option (b). with flexible exchange rate a self-correcting mechanism is put in place that corrects the irregularities in the country.

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