The Bretton Woods System Confronted Severe Problems in the 1960s,problems

question 38

Multiple Choice

The Bretton Woods system confronted severe problems in the 1960s,problems which included

• A)some countries with overvalued currencies refused to devalue their currencies.
• B)dollars held by foreign central banks exceeded gold reserves held by the United States.
• C)the increased demand for gold brought about by lifting the prohibition against U.S.citizens owning gold.
• D)all of the above

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Definitions:

Premium

An amount paid in addition to the standard cost or value, often for insurance, bonds, or the higher quality of a product or service.

Interest Rate

The fee, represented as a proportion of the principal, imposed by a lender on a borrower for utilizing assets.

Effective Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over time by applying a constant interest rate to the carrying amount of the bond.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual percentage rate.