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Which of the Following Was Not a Characteristic of the Fixed

Question 7

Multiple Choice

Which of the following was not a characteristic of the fixed exchange rate system of the finance and monetary structure?


A) The price of gold was fixed at $35 an ounce.
B) The formal and informal rules of this system reflected a political bargain between the United States and Western Europe whereby the United States provided security to Western Europe in exchange for its acceptance of U.S. hegemony.
C) The IMF used a variety of borrowing measures to regulate currency value adjustments.
D) Currency values were allowed to adjust up or down freely according to supply and demand conditions in the market for the U.S. dollar.

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