One problem with the Bretton Woods System was that:
A)the total number of United States (US)dollar reserves held by central banks was greater than US gold reserves.
B)some countries with overvalued currencies refused to devalue them.
C)in the early days of the system, many currencies were undervalued versus the US dollar.
D)gold discoveries caused worldwide inflation.

Question

Quizplus · Accepted Answer

The Bretton Woods System struggled with maintaining the balance between the supply of US dollars and the US gold reserves held by central banks. As countries accumulated more US dollars, they wanted to redeem them for gold, but there wasn't enough gold to meet this demand. This ultimately led to the collapse of the system in 1971 when President Nixon suspended the convertibility of US dollars into gold.

One Problem with the Bretton Woods System Was That