What does the dollar overhang concept refer to?
A)The situation when the number of dollars held in foreign hands grew much faster than the supply of gold backing them
B)The situation when the U.S. government controlled most of the dollars in circulation
C)The situation when a large amount of dollars was being held by the International Monetary Fund
D)The situation when countries were redeeming the dollar for gold at the set price of $35 per ounce

Question

Quizplus · Accepted Answer

The dollar overhang refers to the period when the amount of U.S. dollars held outside the United States increased significantly, surpassing the value of gold the U.S. had to back those dollars, under the Bretton Woods system. This imbalance raised concerns about the U.S.'s ability to maintain the gold standard, where dollars could be exchanged for gold at a fixed rate.

What Does the Dollar Overhang Concept Refer To