Because the Dollar Served as the Bretton Wood's System's Primary

question 44

True/False

Because the dollar served as the Bretton Wood's system's primary reserve asset,reducing the number of dollars circulating in the global economy would reduce the liquidity that financed world trade.

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Definitions:

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and amount of cash flows into the investment.

Arithmetic Average

The simple mean calculated by adding a set of values and then dividing by the number of values.

Geometric Average

The nth root of the product of n numbers, used to calculate average rates of return over time for investments that undergo compounding.

Compounding

The process where an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.