If the U.S. dollar is pegged to gold, then
A: the Federal Reserve must adjust the supply of U.S. dollars when the price of gold changes.
B: the government must buy and sell gold reserves when the price of the dollar changes.
C: the U.S. dollar will not change in value since the price of gold is constant.
D: the U.S. dollar would become more valuable than the Euro.
A: the Federal Reserve must adjust the supply of U.S. dollars when the price of gold changes.
B: the government must buy and sell gold reserves when the price of the dollar changes.
C: the U.S. dollar will not change in value since the price of gold is constant.
D: the U.S. dollar would become more valuable than the Euro.
举一反三
- Under the Bretton Woods system, the U.S. dollar was pegged to gold at $38 per ounce and other currencies were pegged to the U.S. dolla
- An appreciation in the value of the U.S. dollar against the British pound would tend to: A: Increase in the spot price of the yen B: Increase in the forward price of the dollar C: Sale of dollars in the forward market D: Purchase of yen in the spot market
- If the U.S. dollar and British pound have a flexible exchange rate, and the U.S. dollar changes so that one needs more dollars to buy one pound, the currency has A: depreciated. B: appreciated. C: devalued. D: revalued.
- The bid price for a bank is 1.2400 US dollar per euro; and the ask price is 1.2408 dollar per euro. The spread would be __________.
- If the Fed wants to depreciate the U.S. dollar against the British pound, it will ________. A: sell foreign exchange B: decrease the money supply C: sell British pounds D: sell U.S. dollars