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 characterized by adjustable pegged exchange rates, where the value of a country's currency was pegged to the US dollar and could be adjusted within a narrow band of +/- 1 percent. This system aimed to promote international trade and stability by providing a fixed exchange rate system, but it ultimately ended due to the inability to maintain exchange rate stability in the face of increasing global economic pressures.

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