Which of the Following Was Not a Characteristic of the Fixed

question 19

Multiple Choice

Which of the following was not a characteristic of the fixed exchange rate system of the finance and monetary structure?

• A) The price of gold was fixed at $35 an ounce.
• B) The formal and informal rules of this system reflected a political bargain between the United States and Western Europe whereby the United States provided security to Western Europe in exchange for its acceptance of U.S. hegemony.
• C) The IMF used a variety of borrowing measures to regulate currency value adjustments.
• D) Currency values were allowed to adjust up or down freely according to supply and demand conditions in the market for the U.S. dollar.

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Definitions:

Overgrazing

the depletion of vegetation due to continuous feeding by an excessive number of grazers.

Agricultural Revolution

A period of significant technological, social, and economic changes in agriculture, leading to increased production and efficiency.

Desert

A barren area of landscape where little precipitation occurs, thus supporting only sparse vegetation and a limited range of animals due to harsh living conditions.

Information-Globalization Revolution

A period marked by the rapid spread of information technologies and the global integration of economies, cultures, and politics.