Under the Jamaica Agreement ________.

Question

Quizplus · Accepted Answer

The Jamaica Agreement, which was signed in 1976, allowed countries to adopt any exchange-rate system they wanted. This ended the previous system, known as the Bretton Woods system, which had fixed exchange rates and allowed countries to exchange their paper currencies for gold. Under the Jamaica Agreement, currency values were determined by supply and demand rather than being fixed to a specific value. The agreement also allowed countries to choose their own monetary policy without being restricted by international rules. Therefore, choice C is the correct answer.