The Bretton Woods exchange rate system was an example of a
A)target zone.
B)managed float.
C)pure gold standard.
D)modified gold standard.
E)floating exchange rate system.

Question

Quizplus · Accepted Answer

The Bretton Woods exchange rate system was a modified gold standard. It was called modified because unlike the pure gold standard, the value of the US dollar was fixed to gold but other countries’ currencies were fixed to the US dollar instead of gold. This system operated from 1944 until 1971 when the US ended the convertibility of the dollar to gold, leading to the current floating exchange rate system. Target zone and managed float are exchange rate systems that came after Bretton Woods while a pure gold standard is a fixed exchange rate system that existed before Bretton Woods.

The Bretton Woods Exchange Rate System Was an Example of a