Asked by Krystina Colon on Jul 13, 2024
Verified
The basis for the Bretton Woods international monetary system was
A) a completely fixed system of exchange rates.
B) an adjustable peg system of exchange rates.
C) the gold standard.
D) a freely flexible system of exchange rates.
Bretton Woods
Refers to the international monetary system established in 1944, which set up fixed exchange rates and established the International Monetary Fund (IMF) and the World Bank.
Monetary System
The set of mechanisms and institutions that a country uses to manage its money supply, including the minting of coins, printing of banknotes, and regulation of credit.
Exchange Rates
The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.
- Identify the development over time and the operational methods of global exchange rate systems, encompassing the gold standard and the Bretton Woods system.
Verified Answer
NA
Nancy AlarconJul 15, 2024
Final Answer :
B
Explanation :
The Bretton Woods system, established in 1944, was based on an adjustable peg system of exchange rates, where currencies were pegged to the US dollar with the ability to adjust the peg in cases of fundamental disequilibrium.
Learning Objectives
- Identify the development over time and the operational methods of global exchange rate systems, encompassing the gold standard and the Bretton Woods system.