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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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