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    Question

    The Bretton Woods System was essentially

    a:
    A Floating exchange rate regime. Correct Answer Incorrect Answer
    B Gold standard. Correct Answer Incorrect Answer
    C System of adjustable pegs to the US dollar, which was convertible to gold. Correct Answer Incorrect Answer
    D System of freely convertible currencies. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Countries pegged their currencies to the USD, and the US promised to convert USD to gold at $35/ounce for foreign governments. It collapsed in 1971.

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