A Primary Result of the Bretton Woods Agreement Was

question 80

Multiple Choice

A primary result of the Bretton Woods Agreement was:

• A) the establishment of the European Monetary System (EMS).
• B) establishing specific rules for when tariffs and quotas could be imposed by governments.
• C) establishing that exchange rates of most major currencies were to be allowed to fluctuate 1 percent above or below their initially set values.
• D) establishing that exchange rates of most major currencies were to be allowed to fluctuate freely without boundaries (although the central banks did have the right to intervene when necessary).

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in time value of money calculations to compare investment options.

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest, so the loan is paid off by the end of the term.

Repayment Of Principal

Repayment of principal is the process of paying back the original amount borrowed in a loan, separate from interest payments.

Time Lines

Graphical representations showing a line that marks important events in chronological order along specific dates.