As a Result of the Smithsonian Agreement, the U

question 23

Multiple Choice

As a result of the Smithsonian Agreement, the U.S. dollar was:​

• A) ​the currency to be used by all countries as a medium of exchange for international trade.
• B) ​forced to be freely floating relative to all currencies without any boundaries.
• C) ​devalued relative to major currencies.
• D) ​revalued (upward) relative to major currencies.

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Definitions:

Transfers

Transactions where wealth or income is redistributed from one party to another without any exchange of goods or services, such as grants or social security payments.

Households

Units of one or more persons living together who make joint decisions on consumption, work, and income generation.

Discrimination Coefficient

A measure in economics and social sciences to quantify the degree of discrimination or bias shown towards or against a particular group or individual.

Wage Differential

The difference between the wage received by one worker or group of workers and that received by another worker or group of workers.