Before World War II

Question

Before World War II

Quizplus · Accepted Answer

Before World War II, capital flows between the United States and other countries were restricted by regulation. The United States had strict foreign exchange controls that limited the amount of foreign currency that individuals and firms could purchase or hold. This was designed to prevent capital from flowing out of the country and to maintain the stability of the U.S. dollar. As a result, the volume of international trade was relatively small compared to the volume of domestic economic activity.