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1. Faced with a continuing drain of U.S. gold reserves, the U.S. chose to
A. allow interest rates to rise in order to attract gold back into U.S. vaults.
B. lower the exchange ratio of dollars to gold from 1/35 ounce to 1/70 ounce.
C. eliminate the redemption of foreign-held U.S. dollars for gold.
D. end the military draft in an effort to boost U.S. productivity.
2. Pegged exchange rates
A. tie the value of one currency to another.
B. allow a currency to float in value against all other currencies.
C. are not being used today, since the world is on a different exchange rate system.
D. none of the above.
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