Identify the 5 Correct Statements

Essay

Identify the 5 correct statements
1. Current account convertibility allows selling and buying foreign exchange for all purposes.
2. The US dollar was an essential part of the liquidity system under the Gold Standard.
3. The Gold Standard features an automatic and symmetric adjustment mechanism.
4. A major reason for the Gold Standard to collapse was the downward rigidity of prices and wages in the presence of the Great Depression.
5. The Bretton Woods System was essentially a flexible exchange rate system.
6. High inflation in the US ultimately led other countries to leave the Bretton Woods System
7. Flexible exchange rates can help countries to deal with external economic shocks.
8. The monetary policy trilemma suggests that flexible exchange rates are not compatible with monetary autonomy and full capital mobility.
9. It is a major cost of a currency union that it cannot deal easily with asymmetric shocks.
10. The European Monetary Union was introduced in 1999 because it clearly met all criteria for an optimal currency union (OCA).