Which of the following contributed to the demise of the Bretton Woods Accord fixed exchange rate system?
A)a refusal by countries to make necessary changes in their exchange rates
B)similar monetary and fiscal policies among countries that participated in the Accord
C)similar rates of growth and inflation among countries that participated in the Accord
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The refusal by countries to make necessary changes in their exchange rates contributed to the demise of the Bretton Woods Accord. The system required countries to maintain fixed exchange rates with the US dollar, but many countries faced economic pressures that made it difficult to do so, and they resisted making necessary adjustments. The other options, B and C, suggest factors that could have actually supported the Accord, not contributed to its demise.

Which of the Following Contributed to the Demise of the Bretton