Under the Bretton Woods System,an Asymmetry in the Ability of Central

question 18

Multiple Choice

Under the Bretton Woods system,an asymmetry in the ability of central banks to defend their exchange rates existed because

• A) a country experiencing a balance of payments surplus was limited in its ability to defend its exchange rate by its stock of international reserves.
• B) a country experiencing a balance of payments deficit was limited in its ability to defend its exchange rate by its stock of international reserves.
• C) central banks were allowed by the IMF to adjust their exchange rates upward whenever they chose, but were rarely allowed to adjust their exchange rates downward.
• D) central banks were allowed by the IMF to adjust their exchange rates downward whenever they chose, but were rarely allowed to adjust their exchange rates upward.

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Definitions:

Herniated Disc

A condition where the soft center of a spinal disc pushes through a crack in the tougher exterior casing, often leading to pain and nerve irritation.

Lateral Curvature

Often referred to as scoliosis, it is the abnormal sideways curve of the spine when viewed from the front or back.

Scoliosis

A spinal condition characterized by a sideways curve of the spine.

Thoracic

Refers to the part of the body between the neck and the abdomen, encompassing the chest region.