11. Today international finance is based on (LO 19-3) a) the gold standard b) mainly a relatively free-floating exchange rate system c) fixed rates of exchange 12. The international gold standard worked well until (LO 19-3) a) World War I c) 1968 b) 1940 d) 1975 13. If we were on an international gold standard, (LO 19-3) a) inflations would be eliminated b) recessions would be eliminated c) trade deficits and surpluses would be eliminated d) no nation would ever have to devaluate its currency 14. Which statement is false? (LO 19-3) a) The gold standard will work only when the gold supply increases as quickly as the world's need for money. b) The gold standard will work only if all nations agree to devaluate their currencies simultaneously. c) The gold standard will work only if participating nations are willing to accept periodic inflation. d) The gold standard will work only if participating nations are willing to accept periodic unemployment. 15. The gold exchange standard was in effect from (LO 19-3) a) 1900 to 1944 c) 1955 to 1980 b) 1944 to 1973 d) 1973 to the present 16. The United States began to consistently run current account deficits since (LO 19-1, 19-4) a) 1961 d) 1991 b) 1975 e) 2001 c) 1981 17. Today currency exchange rates are set mainly by (LO 19-3) a) the International Monetary Fund b) the U.S. Treasury c) bilateral agreements between trading nations d) supply and demand