Under the Bretton Woods System Each Participating Country Had To

question 40

Multiple Choice

Under the Bretton Woods System each participating country had to:

• A) be willing to exchange their own currency for gold.
• B) hold ample reserves of currency of each of the participating countries.
• C) stand ready to exchange its own currency for U.S. dollars at a fixed exchange rate.
• D) adopt capital controls.

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Definitions:

Production Possibility Frontier

A curve demonstrating the maximum potential output levels of two goods or services an economy can achieve when all resources are efficiently utilized.

Economic

Relating to the principles and practices of economics or the economy; the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Entrepreneur

An individual who starts and runs a new business, taking on financial risks in the hope of profit.

Henry Ford

An American industrialist and the founder of Ford Motor Company, known for revolutionizing the automotive industry through the introduction of mass production techniques.