1. What type of exchange rate system was the gold standard? Explain
how it operated.
2. How does the gold standard eliminate the possibility of continuous
balance of payments disequilibruim?
3. How did the Bretton Woods system differ from the gold standard?
What was the primary purpose of the IMF under the Bretton
Woods? Why did the Bretton Woods system finally collapse?
4. What is seigniorage? Does the United State possess an unfair advan-
tage in world commerce due to seigniorage?
5. What is the difference between “dollarization” and a currency
board?
6. What is the difference between managed floating and free floating
exchange rates?
7. Discuss the common economic reasons for why a country should
adopt a fixed exchange rate arrangement.