The Speculative Attack on the British Pound in 1967 Succeeded

question 69

Multiple Choice

The speculative attack on the British pound in 1967 succeeded because

• A)the pound was seriously undervalued relative to the dollar.
• B)Britain decided to drop out of the Bretton Woods system.
• C)British exports greatly exceeded British imports, causing a large inflow of gold.
• D)the Bank of England lacked the international reserves to defend the existing exchange rate indefinitely.

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Definitions:

Misrepresentation

The act of providing false or misleading information with the intention of deceiving others.

Opponent's Networks

The system of relationships and connections that an opposing party has, which may influence the dynamics of negotiations.

Ethical Negotiating

The practice of engaging in negotiations with honesty, integrity, and respect for all parties involved, aiming for solutions that are fair and beneficial.

Marginally Ethical

Actions or decisions that are just barely within the bounds of accepted moral or ethical standards.