The anchoring feature of the Bretton Woods System was the:
A)fixed value of the United States dollar against gold.
B)fixed value of the rate of exchange of the United States dollar and special drawing rights.
C)law of supply and demand applied to currencies.
D)tying of all currencies to the British pound to reduce the exchange rate fluctuations that occurred during the Great Depression.

Question

Quizplus · Accepted Answer

The anchoring feature of the Bretton Woods System was the fixed value of the United States dollar against gold. Under the system, the US dollar was pegged to gold at a rate of $35 per ounce, and other currencies were pegged to the US dollar. This fixed exchange rate system provided a stable framework for international trade and investment for several decades after World War II.

The Anchoring Feature of the Bretton Woods System Was The