Which of the Following Was the Weakness of the Bretton

question 97

Multiple Choice

Which of the following was the weakness of the Bretton Woods system?

• A)It could be wrecked by heavy borrowings from the World Bank and the International Monetary Fund.
• B)It could not work if the U.S.dollar was under speculative attack.
• C)The inflexibility of the system resulted in high unemployment.
• D)It forced fiscal and monetary discipline on participating nations.
• E)It allowed the countries to engage in competitive currency devaluations.

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Definitions:

Injunction

A judicial order requiring a person or entity to do or cease doing a specific action.

Contract Law

A branch of law dealing with the formation, enforcement, and interpretation of agreements between parties.

Discharged by Agreement

The termination of contractual obligations through mutual consent of the parties involved.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of each party.