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.