Most Economists Trace the Breakup of the Fixed Exchange Rate

question 37

Multiple Choice

Most economists trace the breakup of the fixed exchange rate system to the:

• A)U.S.macroeconomic policy package of 1965-1968.
• B)Formation of the European Community in the late 1950s.
• C)Marshall Plan,under which the United States lent money heavily to European nations.
• D)Failure of the International Monetary Fund to impose monetary discipline.

---

Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporations or governmental entities, which pays back with interest.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, responsibilities, and liabilities.

Legal Entities

Organizations or structures that have legal rights and obligations, including the capacity to enter into contracts and sue or be sued.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a partial ownership in the company.