)(a)Briefly explain why the Classical Gold Standard period is described as a regime of FIXED Exchange

Rate and suggest some reasons why you think many people in business, academia and politics still

yearn for a return to the era.

(b)How did BRETTON WOODS create a system that ultimately led to its own demise?

(c)Suppose a FACTOR will buy an exporters Receivables at 2% per month discount. In addition, the

Factor will charge an extra 1.95 % fee for nonrecourse financing. If the exporter decides to factor

$2.5 million in 180-day receivables without recourse, how much will the exporter receive?. On an

annualized basis, determine how much this transaction will cost the Factor.