The Promise That Was to Hold the Bretton Woods System

question 62

Multiple Choice

The promise that was to hold the Bretton Woods system together was the agreement that

• A)no industrial country would allow high rates of inflation.
• B)foreign central banks would be able to convert U.S. dollars into gold at a fixed price.
• C)no country would raise tariffs on the products of other countries.
• D)all countries would be willing to redeem their paper currencies for gold.

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Definitions:

Lemons

A term popularized in economics referring to the problem of asymmetric information concerning the quality of products, specifically used in the context of used cars.

Potential Buyers

Individuals or entities that show interest in purchasing a product or service but have not yet completed the transaction.

Rustbucket

A term colloquially used to describe an old, dilapidated vehicle, especially one suffering from rust and decay, indicating poor condition.

Used Cars

Pre-owned vehicles that have been previously registered and are available for sale, usually at a lower price than similar new models.