The Triffin Paradox

question 26

Multiple Choice

The Triffin paradox

• A)was first proposed by Professor Robert Triffin.
• B)warned that the gold-exchange system of the Bretton Woods agreement was programmed to collapse in the long run.
• C)was indeed responsible for the eventual collapse of the dollar-based gold-exchange system in the early 1970s.
• D)all of the options

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Definitions:

Preceding August

Indicates a time period or events that occurred before the month of August.

Payment Stream

A series of payments made or received over time, usually as part of a financial agreement such as a mortgage or annuity.

Economically Equivalent

Having the same financial value when considering various factors like time, risk, and opportunity cost.

Invested Rate

The rate of return on an investment, reflecting the annual income earned on the investment expressed as a percentage of its original cost.