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:

Long-term Debt Contracts

Agreements for borrowing funds that are to be repaid over a period longer than one year.

Weighted-average Shares

A calculation used in financial reporting to compute the average number of shares outstanding during a period, adjusting for any stock splits or dividend issues.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.

Dividends Declared

A formal announcement by a company's board of directors to pay dividends to shareholders, specifying the amount and payment date.