Part of the demise of the Bretton Woods system was related to the fact that the U.S. gold stock had become small relative to the potential claims on that stock.

Question

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The Bretton Woods system collapsed partly because the U.S. gold reserves had dwindled significantly, making it difficult to maintain the dollar's convertibility into gold at the fixed rate, as foreign governments and central banks had large amounts of dollars they could potentially convert into gold, threatening the sustainability of the system.

Part of the Demise of the Bretton Woods System Was