The Bretton Woods Agreement

question 6

Multiple Choice

The Bretton Woods agreement:

• A) set up a fixed exchange rate system maintained by purchases and sales of gold.
• B) denounced the establishment of the World Bank.
• C) set up a fixed exchange rate system maintained by purchases and sales of currency.
• D) encouraged countries to devalue their currencies to help their trade deficits.

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Definitions:

Reciprocal Method

An accounting technique used in managerial accounting to allocate costs between support departments, taking into account the mutual services they provide to each other.

Sequential Method

An approach to cost allocation in which support department costs are allocated to other support and operating departments sequentially, one after another, based on a predetermined order.

Reciprocal Services

Services exchanged between departments within an organization, used in cost accounting to allocate service department costs to producing departments.

Reciprocal Services

Services exchanged between departments within an organization or between companies without direct monetary payment, often valued and accounted for through internal mechanisms.