A persistent shortage or surplus of a currency under the Bretton Woods system was evidence of
A) failure to support the existing fixed exchange rate by central banks.
B) speculation against the currency by speculators in world exchange markets.
C) fundamental disequilibrium in the country's exchange rate.
D) all of the above
Question 2
The smaller the fraction of an investment financed by borrowing,
A) the smaller the potential return and the greater the potential loss on that investment.
B) the greater the potential return and potential loss on that investment.
C) the greater the potential return and the smaller the potential loss on that investment.
D) the smaller the potential return and potential loss on that investment.
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