In Response to the Overvalued Dollar in the Early 1970s,the

question 103

Multiple Choice

In response to the overvalued dollar in the early 1970s,the German Bundesbank bought ________ and sold ________ to keep the exchange rate fixed,gaining international reserves.

• A)marks;dollars
• B)marks;pounds
• C)dollars;marks
• D)dollars;pounds

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Definitions:

U.S. Dollar

The U.S. Dollar is the official currency of the United States, serving as a standard medium of exchange and a global reserve currency.

Danish Krone

The official currency of Denmark, often represented by the symbol DKK.

Danish Cookies

Delicious sweet biscuits originating from Denmark, often enjoyed during holidays and special occasions, frequently coming in a tin box.

Brazilian Real

The official currency of Brazil, represented symbolically as R$ and subdivided into 100 centavos.