As a Result of Its Balance of Payments Deficit in the 1960's

question 13

Multiple Choice

As a result of its balance of payments deficit in the 1960's and the effect on its currency:

• A)the United States was able to sell all of its gold holdings at the established price of USD 35 per ounce.
• B)the United States was no longer able to sell its gold holdings at the established price of USD 35 per ounce.
• C)the USD ceased to be the key international currency that it was under the Bretton Woods Agreement.
• D)the IMF had to make temporary loans to the United States.

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Definitions:

Potential Dissonance

The possible tension or conflict that arises when a person holds two contradictory beliefs or attitudes simultaneously.

Low-ball Technique

A persuasion strategy where an initially favorable offer is made to get an agreement, and then terms are made less favorable to the agreement party.

Postdecisional Dissonance

The discomfort experienced after making a difficult choice, often involving feelings of regret or uncertainty.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions, such as beliefs, attitudes, or behaviors.