The Bretton Woods Agreements

question 59

Multiple Choice

The Bretton Woods agreements

• A)established a system of fixed exchange rates based on the free convertibility of the U.S.dollar into gold.
• B)established a system of fixed exchange rates based on the gold standard.
• C)permitted countries with a balance of payments deficit to make regular devaluations of their currencies.
• D)established GATT to police and manage exchange rates.

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Definitions:

Trade Restrictions

measures taken by governments to control or limit the trade of goods and services across their borders, such as tariffs and quotas.

Import Quota

A government-imposed limit on the quantity of a particular good that can be imported into a country.

Domestic Goods

Are products and services that are produced within a country's borders, as opposed to imported goods from other countries.

Federal Revenues

The income received by the federal government from taxes, fees, and other sources used to fund government operations and programs.