Why Was There Very Little Fluctuation in the Foreign Exchange

question 27

Multiple Choice

Why was there very little fluctuation in the foreign exchange rate in the period 1945-1973?

• A) This was a period when the world economy was very stable.
• B) There was very little growth in the world economy between 1945 and 1973.
• C) Countries linked their currency to the U.S. dollar, which was backed by gold reserves.
• D) Most currencies were pegged to the British pound, which could be converted to sterling silver.

---

Definitions:

Holographic Will

A will entirely handwritten, signed, and dated by the person making it, often without the presence of witnesses.

Testator

A person who makes a will.

Heirs

Individuals legally entitled to inherit a deceased person's property or title.

Escheats

This refers to the state's right to take ownership of property if the owner dies without a will and without heirs.