A potential downfall of the Bretton Woods system was that it would not work if
A) the currency of choice, the U.S. dollar, was under speculative attack.
B) only one form of currency was used as the basis for exchange.
C) gold was valued higher than the dollar.
D) at least ten nations failed to agree to the system.
E) services were not included in the agreement.

Question

Quizplus · Accepted Answer

The Bretton Woods system relied on the U.S. dollar being stable and trusted as the world's reserve currency. If the dollar came under speculative attack, it could undermine the entire system.

A Potential Downfall of the Bretton Woods System Was That