Figure 19-10 -Refer to Figure 19-10.Under the Bretton Woods System of Exchange

question 59

Multiple Choice

Figure 19-10
-Refer to Figure 19-10.Under the Bretton Woods System of exchange rates,if the par exchange rate was $4 per pound in the figure above,then which of the following is true?

• A)The Bank of England would have to buy 0.7 million pounds per day with dollars.
• B)There is a shortage of pounds equal to 0.7 million.
• C)The Bank of England would have to sell 0.7 million pounds per day in exchange for dollars.
• D)The par exchange rate is below the equilibrium rate,causing a shortage of domestic currency.

---

Definitions:

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that organizes human needs into a hierarchical structure, with basic needs at the bottom and self-actualization at the top.

Consistency

The degree to which a substance holds together; uniformity or thickness of a fluid.

Devaluing

Reducing or underestimating the importance, value, or worth of something or someone.