Given Our Experience with the Gold Standard and the Bretton

question 34

Multiple Choice

Given our experience with the gold standard and the Bretton Woods agreement,most economists today would probably agree that

• A) both floating and fixed exchange rate systems are less desirable than the gold standard.
• B) floating exchange rate systems offer a definite advantage over fixed exchange rate systems.
• C) fixed exchange rate systems offer a decided advantage over floating exchange rate systems.
• D) neither floating nor fixed exchange rate systems can operate effectively in today's world market.
• E) fixed and floating exchange rate systems should be employed simultaneously to have a beneficial impact.

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Definitions:

Well-defined

Clearly described or specified with no ambiguity, allowing for a precise understanding or interpretation.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Moral Intelligence

The capacity to understand right from wrong and to behave based on the values that are accepted as ethical and good.

Personal Gain

Advantages or benefits obtained for oneself, often through self-interested actions.