Global Currency and Trade Quiz

What was the purpose of the meeting held in Bretton Woods in 1944?

• To negotiate trade deals with European countries

• To discuss the financial problems faced by the US

• To create a new financial system for the world

• To establish a central bank within the US

What was the main advantage of using US dollars for trade according to the US in the Bretton Woods meeting?

• Guaranteed exchange rate of $50 for 1 ounce of gold

• Backed by gold reserves of other countries

• Stable financial system for international trade

• Ability to print unlimited currency

What was the impact of Germany's action of producing fake Sterling Pound notes during the Second World War?

• Boosted the value of Pound Sterling in the international market

• Resulted in an increase in gold reserves for the UK

• Caused a collapse of the US dollar

• Led to a loss of faith in the Sterling Pound currency

What was the main reason for the UK's financial crisis after the First World War?

• Depletion of gold reserves due to war expenses

• Excessive borrowing from the US

• Inflation caused by overprinting of currency

• Lack of trade opportunities with other countries

What was the primary method of trade before the introduction of paper currency?

• Bank notes

• Gold and silver coins

• Hawala system

• Barter system

What was the major advantage of using gold and silver coins for trade?

• Ease of transportation

• Long-term stability

• Ability to print unlimited coins

• Guaranteed exchange rate with other countries

What was the purpose of creating banks in China during the 12th century?

• To facilitate barter trade

• To store gold and silver coins

• To issue paper currency

• To provide loans to traders

What was the impact of the US entering the Second World War?

• Decreased gold reserves for the US

• Led to the collapse of the US dollar

• Boosted the economy of European countries

• Increased US gold reserves through weapon sales

What was the main reason for the collapse of the financial system in European countries after the Second World War?

• Depletion of gold reserves

• Dependence on barter system

• Lack of trade opportunities

• Overprinting of currency

What was the significance of the US dollar becoming the global currency after the Second World War?

• Led to the collapse of the gold standard

• Stabilized the international financial system

• Increased trade opportunities for European countries

• Caused inflation in the US economy