What is meant by the statement that the international monetary system has operated mostly under a “gold standard”? What are the major criticisms associated with being on a gold standard?
Answer to relevant QuestionsDescribe the Bretton Woods system for setting currency exchange rates. What are special drawing rights (SDRs) and how are they used to foster world trade? What are currency or foreign exchange markets? How may a bank protect itself after having issued a commercial letter of credit on behalf of a customer? You are the owner of a business that has offices and production facilities in several foreign countries. Your product is sold in all of these countries, and you maintain bank accounts in the cities in which you have offices. ...Exchange rate relationships between the U.S. dollar and the euro have been quite volatile. When the euro began trading at the beginning of 1999, it was valued at 1.17 U.S. dollars. By late-2000, a euro was worth only $.83 ...
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