question archive Up to 1957, the U
Up to 1957, the U
Subject:EconomicsPrice:2.88 Bought3
Up to 1957, the U.S. deficits were small and the United States settled most of them in dollars. Nations with surplus were willing to accept dollars for what reason?
A. The U.S. stood ready to exchange dollars for gold at the fixed price of $35 an ounce
B. Dollars could be used as an international currency in bilateral transactions with the US only
C. Dollar deposits earned no interest
D. The US was going to devalue their currencyc
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The correct answer to the question being asked is A. The U.S. stood ready to exchange dollars for gold at the fixed price of $35 an ounce . Since 1944, the United States had a policy that stated that they would exchange the us dollar for $35 dollars an ounce. This gave investors confidence that the US could pay its debts and on its investments.
