Risk-sharing agreements became something of a rarity during the ________,when exchange rates were relatively stable.
A)1920s and 1940s
B)1940s and 1950s
C)1950s and 1960s
D)1960s and 1970s
E)1970s and 1980s

Question

Quizplus · Accepted Answer

During the 1950s and 1960s, exchange rates were relatively stable due to the Bretton Woods system, which fixed exchange rates to the US dollar. As a result, there was less need for risk-sharing agreements, which are typically used to manage exchange rate risk. This changed in the 1970s when the Bretton Woods system collapsed and exchange rates became more volatile, leading to a resurgence in risk-sharing agreements.

Risk-Sharing Agreements Became Something of a Rarity During the ________,When