Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Which of the following statement/statements are true?
Statement 1: Gold standard system of exchange rate takes gold as the common unit of parity between currencies of different countries.
Statement 2: Bretton woods is the most rigid exchange rate system.

Options:

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Correct Answer:

Statement 1 is true and Statement 2 is false

Explanation:

Bretton woods is not the most rigid exchange rate system. Gold standard is the most rigid under which gold was taken as the common unit of parity between currencies of different countries.