Which of the Following Is True

question 68

Multiple Choice

Which of the following is true?

• A)One disadvantage of the Bretton Woods Accord was the resulting increase in exchange rate risk.
• B)One advantage of a fixed exchange rate system was that the act of having to buy back one's own currency to maintain fixed exchange rates enhanced the ability of foreign countries to pursue their own monetary policies.
• C)Under fixed exchange rates, a country pursuing contractionary monetary policy would be expected to experience decreased net exports and capital outflows.
• D)Under the Bretton Woods Accord, as long as foreign central banks were accumulating dollars to serve as international reserves, the U.S. could pursue expansionary domestic policies that resulted in deficits on current and capital accounts without worrying about exchange rate pressures on the dollar or other foreign currencies.

---

Definitions:

Goodwill Expression

Communication intended to create or maintain positive relationships, often demonstrating kindness or friendliness.

Generate Goodwill

The act of fostering a positive image and favorable perception among customers, stakeholders, or the public through beneficial actions.

Positive Messages

Communications that convey affirmative or constructive information, often intended to encourage or uplift the receiver.

Resolved Situation

A circumstance or issue that has been dealt with successfully and brought to a resolution.