Under the Bretton Woods System, an Asymmetry in the Ability

question 78

Multiple Choice

Under the Bretton Woods system, an asymmetry in the ability of central banks to defend their exchange rates existed because

• A)a country experiencing an excess demand for its currency on foreign-exchange markets was limited in its ability to defend its exchange rate by its stock of international reserves.
• B)a country experiencing an excess supply of its currency on foreign-exchange markets was limited in its ability to defend its exchange rate by its stock of international reserves.
• C)central banks were allowed by the IMF to adjust their exchange rates upward whenever they chose, but were rarely allowed to adjust their exchange rates downward.
• D)central banks were allowed by the IMF to adjust their exchange rates downward whenever they chose, but were rarely allowed to adjust their exchange rates upward.

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Definitions:

Humanistic-existential

Humanistic-existential psychology focuses on individual experience and personal growth, emphasizing personal responsibility, free will, and the meaning of life.

Cognitive-behavioral

Relating to a therapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Sociocultural

Relating to the mix of social and cultural influences that shape a person's actions and viewpoints.

Psychodynamic

A therapeutic approach emphasizing the role of the unconscious mind, past experiences, and interpersonal relationships in shaping behavior and feelings.