The Speculative Attack on the British Pound in 1967 Succeeded

question 69

Multiple Choice

The speculative attack on the British pound in 1967 succeeded because

• A)the pound was seriously undervalued relative to the dollar.
• B)Britain decided to drop out of the Bretton Woods system.
• C)British exports greatly exceeded British imports, causing a large inflow of gold.
• D)the Bank of England lacked the international reserves to defend the existing exchange rate indefinitely.

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Definitions:

Promoters

Individuals or entities that take the initiative in founding and organizing a business or corporation, often responsible for its early management and securing of initial capital.

Incorporation Process

The legal procedure through which a business entity is formed and recognized as a corporation under the law, providing it with certain legal rights and protections.

Capital

Financial assets or resources owned by an individual or organization, used for investment or production.

Corporate Bylaws

Detailed rules adopted by a corporation governing its operations, including the rights and responsibilities of shareholders and directors.