Question

One of the major reasons for creation of the Bretton Woods Agreement was the pressing need for the U.S. government to pay for the costly war in Viet Nam in addition to expensive domestic programs. Select one: □ True False

Answer 1

Question 1.False.

Bretton Woods Agreement is a monetary and exchange rate management established in 1944.It was developed in the UN Monetary and Financial Conference held in Bretton Woods in1944.Vietnam war was during the period from 1955-1975.So it has no relation.

Question 2. Ans. b.The dollar strengthens against the Euro.

The dollar strengthens against Euro means the dollar appreciated against Euro.When the exchange rate raises the value of dollar Jennifer needs to spend less dollars to get more Euro.

Question 3.True.

As the value of Peso is strengthened or appreciated against US dollar La Rosa will receive less price in terms of domestic currency (Peso).So they will reduce the export.