A Primary Result of the Bretton Woods Agreement Was

question 17

Multiple Choice

A primary result of the Bretton Woods Agreement was:

• A)the establishment of the European Monetary System (EMS).
• B)establishing specific rules for when tariffs and quotas could be imposed by governments.
• C)establishing that exchange rates of most major currencies were to be allowed to fluctuate 1% above or below their initially set values.
• D)establishing that exchange rates of most major currencies were to be allowed to fluctuate freely without boundaries (although the central banks did have the right to intervene when necessary).

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Definitions:

Ordinary General Annuity

An annuity where payments are made at the end of each period, such as monthly or annually, over a specified length of time.

Present Value

The contemporary worth of an expected future sum of money or flow of cash payments, accounting for a specific rate of return.

Periodic Interest Rate

The amount of interest charged or earned over a particular period of time, often expressed as a rate per month or quarter.

Compounded Annually

Interest calculation method where interest is added to the principal sum once per year, leading to an increase in the amount of subsequent interest.