Under the Bretton Woods System

question 10

Multiple Choice

Under the Bretton Woods system,

• A) there was an explicit set of rules about the conduct of international trade policies
• B) each country was responsible for maintaining its exchange rate within 2.50 percent of the adopted par value by buying or selling foreign exchanges as necessary
• C) the U.K. sterling pound was the only currency that was fully convertible to gold
• D) each country established a par value in relation to the U.S. dollar, which was pegged to gold at $35 per ounce.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype.

Cognitive Map

A mental representation of one's physical environment, helping individuals navigate and understand spatial information.

Algorithm

A step-by-step procedure or formula for solving a problem or completing a task in a finite number of steps.

Base-Rate Information

Statistical information about the frequency or prevalence of a phenomenon, event, or characteristic within a given population.