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.

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Definitions:

Low Key

Describes a manner or approach that is deliberately understated or low in intensity, often to avoid attracting attention or to maintain a relaxed atmosphere.

Deliberate

Intended or planned, a process or action carried out with conscious intent and careful consideration.

Extraversion

A personality trait characterized by outgoingness, high energy, and a tendency to seek stimulation and the company of others.

Personality Test

An assessment used to evaluate the character traits, temperament, and emotional patterns of an individual.