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:

Original Investment

The initial amount of money put into an investment or project, before any earnings, interest, or growth.

Common Shareholders

Individuals or entities that own common shares in a company, giving them rights to vote at shareholders' meetings and to receive dividends.

Bid Price

The price at which a dealer is willing to purchase a security.

T-bill

Short-term debt obligations issued by the U.S. government, known for their safety and liquidity, typically maturing in one year or less.