The Bretton Woods system of 1944-1973 was essentially a system of
A) freely fluctuating exchange rates.
B) crawling pegged exchange rates.
C) managed floating exchange rates.
D) adjustable pegged exchange rates.

Question

Quizplus · Accepted Answer

The Bretton Woods system was a system of adjustable pegged exchange rates, meaning that each country would set a fixed exchange rate with the US dollar, which in turn was linked to gold. However, countries could adjust their exchange rates if they experienced persistent trade deficits or surpluses.

The Bretton Woods System of 1944-1973 Was Essentially a System