The Bretton Woods Agreement

question 160

Multiple Choice

The Bretton Woods agreement

• A) set up a fixed exchange rate system that was maintained by purchases and sales of gold.
• B) denounced the establishment of the World Bank.
• C) set up a fixed exchange rate system maintained by purchases and sales of currency.
• D) encouraged countries to devalue their currencies to help their trade deficits.

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Definitions:

Internal Rate

The interest rate at which the net present value of all the cash flows from an investment or project is zero.

Sustainable Growth

The rate at which a company can grow its sales, earnings, and dividends without borrowing additional funds or issuing new equity, often considered a measure of a company's long-term financial health.

Debt-Equity Ratio

A ratio demonstrating the relative amounts of shareholders' equity versus debt financing in a corporation's asset base.

Fixed Assets

Tangible assets that are held by an entity for long-term use and are not expected to be converted into cash in the short term.