The Bretton Woods System

question 79

Multiple Choice

The Bretton Woods system

• A)fixed exchange rates in terms of U.S.dollars
• B)fixed exchange rates in terms of all major currencies
• C)fixed exchange rates in terms of gold
• D)established a system of flexible exchange rates
• E)established the European monetary system

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Definitions:

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity demanded by all consumers in the market.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.

Free-Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses without government intervention.

Negative Externality

A situation where a third party suffers costs or harm as a result of an economic transaction between other parties, without compensation, such as pollution from a factory affecting nearby residents.