Which of the following is not a true statement about the Bretton Woods system?
A)The value of the dollar was fixed in terms of gold.
B)Other currencies fixed values in terms of the dollar.
C)The U.S. was able to increase its money supply easily.
D)Trade deficits were eliminated.

Question

Quizplus · Accepted Answer

The Bretton Woods system did not eliminate trade deficits, as countries were still able to run trade deficits or surpluses. However, the system did establish a framework for managing international trade and finance after World War II, with the U.S. dollar serving as the international reserve currency and other currencies pegged to its value.

Which of the Following Is Not a True Statement About