The Bretton Woods Arrangement

question 62

Multiple Choice

The Bretton Woods arrangement

• A)fixed the value of the U.S. dollar relative to gold.
• B)required that conditions specifying permissible policy actions be placed on member countries.
• C)required foreign central banks to hold certain minimum amounts of gold as foreign exchange reserves.
• D)fixed the value of the U.S. dollar relative to the Euro.
• E)required that member nations, other than the United States, to disband their central banks.

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Definitions:

Price Volatile

Characterizes a market or commodity whose price is subject to rapid, unexpected, and often large changes.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Supply Curve

A graph showing the relationship between the quantity of goods supplied by producers and the price of those goods.

Price Levels

The average of current prices across the entire spectrum of goods and services produced in the economy.