Which of the Following Statements Is NOT True

question 33

Multiple Choice

Which of the following statements is NOT true?

• A) The Gold Standard Era was characterized by growing openness in trade, but limited capital mobility.
• B) The time period between World Wars I and II (the inter war years) witnessed significant reductions in trade barriers and a rapid acceleration in international trade.
• C) The Bretton Woods Era (post WWII) realized the increasing benefits of open economies. Furthermore, trade was increasingly dominated by capital.
• D) Since March 1973, exchange rates have become much more volatile and less predictable than previous periods.

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Definitions:

Risk Free Interest Rate

The theoretical rate of return on an investment with zero risk, typically represented by the yield on government bonds.

Exercise Price

The exercise price is the specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Binomial Model

A mathematical model used in finance to estimate the price of options by considering two potential outcomes for an asset's price (up and down) over time.

Risk Free Interest Rate

The rate of return on an investment with zero risk of financial loss, typically based on government bonds.