Under the Bretton Woods system, an asymmetry in the ability of central banks to defend their exchange rates existed because
A)a country experiencing an excess demand for its currency on foreign-exchange markets was limited in its ability to defend its exchange rate by its stock of international reserves.
B)a country experiencing an excess supply of its currency on foreign-exchange markets was limited in its ability to defend its exchange rate by its stock of international reserves.
C)central banks were allowed by the IMF to adjust their exchange rates upward whenever they chose, but were rarely allowed to adjust their exchange rates downward.
D)central banks were allowed by the IMF to adjust their exchange rates downward whenever they chose, but were rarely allowed to adjust their exchange rates upward.

Question

Quizplus · Accepted Answer

The Answer of Under the Bretton Woods system, an asymmetry in the ability of central banks to defend their exchange rates existed because
A)a country experiencing an excess demand for its currency on foreign-exchange markets was limited in its ability to defend its exchange rate by its stock of international reserves.
B)a country experiencing an excess supply of its currency on foreign-exchange markets was limited in its ability to defend its exchange rate by its stock of international reserves.
C)central banks were allowed by the IMF to adjust their exchange rates upward whenever they chose, but were rarely allowed to adjust their exchange rates downward.
D)central banks were allowed by the IMF to adjust their exchange rates downward whenever they chose, but were rarely allowed to adjust their exchange rates upward.

Under the Bretton Woods System, an Asymmetry in the Ability