The Bretton Woods System Was One in Which Central Banks

question 61

Multiple Choice

The Bretton Woods system was one in which central banks

• A) bought and sold their own currencies to keep their exchange rates fixed.
• B) agreed not to intervene in the foreign exchange market to maintain a fixed exchange rate regime that had existed prior to World War I.
• C) agreed to limit domestic money growth to the average of the five largest industrial nations.
• D) agreed to limit domestic money growth to the average of the seven largest industrial nations.

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Definitions:

Attitude

An acquired inclination to assess various entities, including people, topics, objects, or occurrences, in a specific manner.

Foot-In-The-Door Phenomenon

The foot-in-the-door phenomenon is a psychological tactic involving getting someone to agree to a small request to increase the chances they will agree to a larger request later.

Role Playing

A method for learning or therapeutic intervention where individuals act out roles in a controlled setting to gain insight into themselves or others.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate personal disposition and traits when interpreting others' behavior.