Under the Bretton Woods System, Each Currency's Value Was to Be

question 113

Multiple Choice

Under the Bretton Woods system, each currency's value was to be fixed relative to other currencies. What was the mechanism for maintaining these rates?

• A) A currency board made up of representatives from all participating nations
• B) A currency board made up of representatives from the 12 largest (based on real GDP) participating nations
• C) Intervention by governments and central banks in the currency market
• D) Joint intervention by the Federal Reserve of the United States and the British Central Bank

---

Definitions:

Required Return

The minimum expected return an investor demands for the level of risk taken on an investment.

Dividend

A part of a company's profits given out to its shareholders, often as cash or extra stock.

Growth Rate

A measure of the increase in size, number, value, or strength of something over a specific period of time.

Beta

An indicator of the degree to which a particular stock's movement is volatile compared to the general market, conveying the risk level of the stock relative to the market norm.