The existence of imperfect markets has prevented the internationalization of financial markets.

a. True

b. False

Under the gold standard, each currency was convertible into gold at a specified rate, and the exchange rate between two currencies was determined by their relative convertibility rates per ounce of gold.

a. True

b. False

An investor engaging in a transaction whereby he or she contracts to purchase British pounds one year from now is an example of a spot market transaction.

a. True

b. False