Under the Bretton Woods system, the value of the dollar could be changed
A)only by a coordinated realignment of all other currencies.
B)only if the Fed were willing to buy large amounts of foreign currency.
C)only if the Fed were willing to sell large amounts of foreign currency.
D)by adjusting short-term interest rates in the United States.

Question

Quizplus · Accepted Answer

Under the Bretton Woods system, the value of the US dollar was set at a fixed rate relative to gold, and other countries were required to maintain their exchange rates within a narrow band relative to the dollar. If the US wanted to change the value of the dollar, it had to coordinate with other countries to adjust their exchange rates as well. This was usually done through multilateral negotiations at the International Monetary Fund (IMF).

Under the Bretton Woods System, the Value of the Dollar