Under the Bretton Woods system,a fixed exchange rate supported by central banks was known as a ________ exchange rate.

Question

Quizplus · Accepted Answer

Under the Bretton Woods system, a fixed exchange rate was established at a specific level known as the par value of currencies. This par value was supported by central banks, and any fluctuation in the exchange rate was corrected by buying or selling currencies in the foreign exchange market. Therefore, the correct term for this fixed exchange rate is a par exchange rate.

Under the Bretton Woods System,a Fixed Exchange Rate Supported by Central