Which of the Following Best Describes the Circumstances Surrounding the Breakdown

question 160

Multiple Choice

Which of the following best describes the circumstances surrounding the breakdown of the Bretton Woods system?

• A) The United States was enjoying a persistent trade surplus.
• B) There was too much dependence on the dollar because no other country had a stable currency.
• C) Germany, with its strong currency, refused to defend the dollar.
• D) Speculators were betting on the depreciation of the U.S. dollar, and they started selling dollars in the foreign exchange market.
• E) The member countries began restricting free trade by introducing tariffs.

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Definitions:

Mid-Ocean Ridge

A series of mountains beneath the ocean, generated by the shifting of tectonic plates, where fresh oceanic crust is formed.

Shear Zone

A generally tabular zone of rock that is more highly sheared and deformed than rocks outside the zone.

Fold and Thrust Belts

Regions in the Earth's crust where the layers of rock have been folded and thrusted over one another due to compressional forces, often found in mountainous areas.

Thrust Faults

Types of reverse faults that have a dip of 45 degrees or less, meaning they are nearly horizontal; significant in shaping landscapes by pushing rocks upwards.