When the United States abandoned the Bretton Woods System in 1973,it adopted a system of
A) managed floating exchange rates
B) freely fluctuating exchange rates
C) adjustable pegged exchange rates
D) crawling pegged exchange rates

Question

Quizplus · Accepted Answer

Managed floating exchange rates refer to a system in which the exchange rate is allowed to fluctuate freely, but central banks may intervene in the foreign exchange market to manage the rate within a certain range. This was the system adopted by the United States after the Bretton Woods System was abandoned in 1973.

When the United States Abandoned the Bretton Woods System in 1973,it