1. Type of exchange rate system was the gold standard? Explain how it is operated.
2. How does the gold standard eliminate the possibility of continuous balance of payments disequilibria?
3. What is seigniorage Does the United State pom an unfair advantage in world commerce due to seigniorage?
4. Discuss the common economic reasons for why a country should adopt a fixed exchange rate arrangement.
5. Explain and graphically illustrate how speculators can attack a currency under the fixed exchange rate system.