Which of the Following Observations Is True of the Bretton

question 105

Multiple Choice

Which of the following observations is true of the Bretton Woods agreement?

• A)The participating countries were required to exchange their currencies for gold.
• B)Devaluation was accepted as a tool of competitive trade policy.
• C)The agreement called for a system of floating exchange rates.
• D)For weak currencies,devaluation of up to 10 percent was allowed without any formal approval by the International Monetary Fund.
• E)A fixed exchange rate system was deemed impractical.

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Definitions:

Endowment Fund

Financial assets donated to institutions or organizations with the stipulation that the funds are to be invested and the principal remains intact.

Restricted Fund

Denotes funds that are earmarked for a specific purpose by donors or grantors, limiting their use to certain activities or projects.

Investment Income

The money that an individual or entity earns from various investments, such as dividends, interest, or rental income.

Net Assets

The total assets of a company minus its total liabilities, representing the shareholders' equity in the company.