The Bretton Woods System Was Expected to Be More Stable

question 28

Multiple Choice

The Bretton Woods system was expected to be more stable than the gold standard because

• A)the world supply of gold had increased greatly by the time the Bretton Woods system was established.
• B)large trade deficits and surpluses would be unlikely to occur under the Bretton Woods system.
• C)fewer countries were involved in the Bretton Woods system than had been involved in the gold standard.
• D)the IMF was set up to be a lender of last resort.

---

Definitions:

Alger Hiss

A former U.S. government official who was accused of being a Soviet spy in 1948 and convicted of perjury in connection with this charge.

Julius Rosenberg

An American who, along with his wife Ethel, was convicted of espionage for the Soviet Union and executed in 1953, in a case that remains controversial.

Ethel Rosenberg

An American woman who, with her husband Julius Rosenberg, was convicted of espionage for allegedly passing atomic secrets to the Soviet Union during the Cold War.

Truman Doctrine

A United States policy, established in 1947, aimed at containing the spread of communism beginning with aid to Greece and Turkey.