Under the Bretton Woods agreement,

Question

Quizplus · Accepted Answer

Under the Bretton Woods agreement, governments intervened to maintain the exchange rate by buying or selling their own currency in the foreign exchange market. This often led to disruptions in their domestic economy, as they had to adjust their monetary policy to keep the exchange rate fixed. Therefore, choice B is the best answer. Choices A, C, and D are incorrect, as the Bretton Woods agreement fixed exchange rates between currencies and did not allow them to move freely relative to each other.

Under the Bretton Woods Agreement