PART I: TRUE/FALSE/UNCERTAIN QUESTIONS: (60 marks) (4.63 marks each). Indicate whether the following statement is true, false or uncertain. You do not have to justify your answer,

6. A critical flaw of the gold standard was its inability to increase gold reserves in an adequate or systematic manner to accommodate the growth of international trade. 7. For most countries there is a close connection between balance-of payments deficits and reserves declines, but in the case of the U.S., U.\& balance-of-payments deficits have not been correlated with reserves d clines