The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?
Correct answer: A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed upon value of its currency
- A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed upon value of its currency
- B. in which the value of currencies was fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading
- C. of floating exchange rates determined of the supply and demand of one nation's currency relative to the currency of other nations
- D. That prohibited governments from intervening in the foreign exchange markets
Explanation
Bretton Woods created an essentially fixed but adjustable exchange-rate system in which countries intervened to maintain agreed currency values. Option b more closely describes a gold-standard arrangement because Bretton Woods currencies were generally pegged to the US dollar, not each directly to a specific amount of gold.
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