This Was an Era Dominated by Industrialized Nation Economies That

question 78

Multiple Choice

This was an era dominated by industrialized nation economies that were dependent on gold convertibility to maintain confidence in the system.

• A) The Gold Standard, 1860-1914
• B) The Interwar Years, 1914-1945
• C) The Bretton Woods Era, 1945-1971
• D) The Floating Era, 1971-1997

---

Definitions:

Fixed-rate Bonds

Fixed-rate Bonds are bonds that pay the same rate of interest from issue until maturity, regardless of changes in market interest rates.

Floating-rate Bonds

Bonds whose interest rate payments adjust periodically based on an underlying benchmark, making them less sensitive to interest rate changes.

Interest Rate Swap

A financial derivative contract in which two parties exchange interest rate payments on a specified principal amount.

LIBOR

The London Interbank Offered Rate, an interest rate average calculated from estimates submitted by the leading banks in London and used as a reference for lending rates worldwide.