Which of the Following Best Describes Circumstances Surrounding the Breakdown

question 189

Multiple Choice

Which of the following best describes circumstances surrounding the breakdown of the Bretton Woods system?

• A)The United States was enjoying a persistent trade surplus.
• B)There was too much dependence on the dollar because no other country had a stable currency.
• C)Germany, with its strong currency, refused to defend the dollar.
• D)Speculators were betting on the fall of the dollar.
• E)All the other nations basically wished their currencies to appreciate, which was impossible under the system.

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Definitions:

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified call price.

Noncallable Bonds

Bonds that cannot be redeemed by the issuer before their maturity date.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date, usually at a predetermined price.