Which of the Following Are True Statements About the Bretton

question 52

Multiple Choice

Which of the following are true statements about the Bretton Woods system?

• A) The Bretton Woods system was a flexible exchange rate regime, in which central banks allowed their currencies to float within a wide trading band.
• B) The U.S. dollar was called a reserve currency because it was used to denominate the securities central banks held as international reserves.
• C) The Bretton Woods agreement broke down in 1945.
• D) Only A and B of the above are true.

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Definitions:

Utility Maximizing

The economic principle that individuals or firms seek to achieve the highest level of satisfaction or profit from their consumption or production choices.

Budget Constraint

The limit on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Inferior Good

A type of good for which demand decreases as the consumer's income increases, contrasting with normal goods.

Less Durable

Describes goods or products that have a shorter usable lifespan before they degrade, wear out, or become obsolete.