Describe a price weighted stock market index. How is it computed? What is one reason for its use, rather than using a different type of stock market index?

B. Describe a value weighted stock market index. How is it computed? What is one reason for its use, rather than using a different type of stock market index?

C. Give two reasons why it is impossible for a mutual fund, that follows any stock market index, to earn as much money as the index upon which it is based?

1. A, B. The International Monetary Fund (IMF) was created to manage the Bretton Woods currency exchange system, which was in place from 1945 until 1971. Separately answering as parts A and B, identify and explain two different tools the IMF had to handle a countrys trade imbalance (trade deficit).

C. The Bretton Woods system came to an end in 1971. Explain how the Bretton Woods system inevitably collapsed, specifically due to the policy choices made by the IMF and/or the Federal Reserve Bank (FRB) of the USA and/or the governments of other participating nations.