Under the exchange rate system established by the Bretton Woods agreement, the value of most currencies in terms of ______________ was fixed for long periods and was allowed to change only under a specific set of circumstances.
A)British pound
B)Japanese yen
C)U.S.dollars
D)German deutsche mark
E)European Euro

Question

Quizplus · Accepted Answer

Under the Bretton Woods agreement, the value of most currencies was pegged to the U.S. dollar, which was in turn pegged to gold. This meant that the value of other currencies remained fixed in relation to the U.S. dollar, with only minor fluctuations allowed. The system collapsed in the early 1970s due to various economic pressures, including inflation and balance of payments deficits.

Under the Exchange Rate System Established by the Bretton Woods