The Bretton Woods Agreement created a system under which exchange rates are determined by market forces without intervention by various governments.

Question

Quizplus · Accepted Answer

The Bretton Woods Agreement created a fixed exchange rate system, in which exchange rates were determined by the central banks of participating countries and were fixed to the value of the U.S. dollar, which was in turn pegged to gold. Governments were allowed to intervene in the foreign exchange market to maintain the fixed exchange rate.

The Bretton Woods Agreement Created a System Under Which Exchange