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Under the Bretton Woods Agreement, Support of a Country's Currency

Question 36

Multiple Choice

Under the Bretton Woods Agreement, support of a country's currency in the face of depreciation against the dollar could continue


A) indefinitely.
B) only as long as U.S. holdings of that country's securities lasted, so that the United States would continue to have something to sell that country.
C) only as long as that country's holdings of its own international currency securities lasted, so that it could continue to purchase its own securities.
D) only as long as that country's holdings of dollar reserves lasted, so that it could continue to purchase domestic securities.
E) only as long as the World Bank did not find out and respond with punitive monetary intervention.

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