In the 1980s and 1990s, an increasing number of states removed the restrictions on capital flows, one by one, that had been part of every state's policies since World War II. Which is NOT a reason that states removed these controls?
a. Actors who controlled a lot of capital put pressure on governments to allow freer movement.
b. States removed these controls because allowing capital mobility provided access to massive amounts ofinternational capital.
c. Liberalization is the belief that markets are better than governments at allocating economic resources.
d. The WTO required free capital flow for membership.
The international monetary system that followed the collapse of the Bretton Woods agreement consisted of all the following features except
a. coordinated government intervention.
b. unilateral government policies.
c. market forces.
d. unrestricted capital movement.
Which U.S. President took the United States off the gold standard?
a. Nixon
b. Ford
c. Carter
d. Eisenhower
Which of the following is NOT a reason the United States taken off the gold standard in the early 1970s?
a. The Vietnam War and the Great Society antipoverty programs increased U.S. budget deficits.
b. As the dollar overhang grew, foreign investors and governments grew less willing to finance it.
c. The Vietnam War undermined U.S. moral authority.
d. Vast amounts of gold discovered in the Yukon Territory.
The dollar overhang concept refers to the situation when
a. the number of dollars held in foreign hands grew much faster than the supply of gold backing them.
b. the U.S. government controlled most of the dollars in circulation.
c. a large amount of dollars were being held by the International Monetary Fund.
d. countries were redeeming the dollar for gold at the set price of 35 per ounce.
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