In the Current International Monetary System, What Is the Role

question 198

Multiple Choice

In the current international monetary system, what is the role for gold?

• A)The system is a gold-exchange standard, based on a fixed value for a key currency.
• B)Gold backs each currency, and therefore, the system as a whole.
• C)It serves as the principal reserve asset.
• D)It has no role.

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Definitions:

Demand Curve

A graph depicting the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at that price.

Monopsony

A market situation where there is only one buyer for a product or service, giving the buyer substantial control over the market price.

Collude

The act of cooperating or conspiring, especially in a secretive manner among firms, to limit competition or manipulate market prices.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to offer at those wages.