Question1. The world economies moved from the gold standard and fixed currency exchange rates to a non-gold standard and floating currency exchange rates... What were the advantages of the gold standard? What led to the collapse of the Bretton Woods system? What are the advantages to floating currency versus fixed currency exchange rates? Explain the establishment of G5 and its transformation to G20.

Question 2. Countries are becoming more global in trade and commerce... What are the main uses of the foreign exchange market? How did the Eurocurrency markets come into existence? What is the primary source of appeal of the Eurocurrency market for the borrowers? What do you understand by the term "world financial centers"? What are derivatives? Discuss the different types of derivatives. What are offshore financial centers?