Which of the following observations is true of the Bretton Woods agreement?
A)All countries participating were required to exchange their currencies for gold.
B)Devaluation was accepted as a tool of competitive trade policy.
C)All participating countries agreed to try to maintain the value of their currencies within 10 percent of the par value by buying or selling currencies as needed.
D)Devaluation of up to 10 percent would be allowed without any formal approval by the IMF.

Question

Quizplus · Accepted Answer

All participating countries agreed to try to maintain the value of their currencies within 1 percent of the par value by buying or selling currencies (or gold)as needed.Another aspect of the Bretton Woods agreement was a commitment not to use devaluation as a weapon of competitive trade policy.A devaluation of up to 10 percent would be allowed without any formal approval by the IMF.Larger devaluations required IMF approval.

Which of the Following Observations Is True of the Bretton