Which of the following was true of the Bretton Woods system?
A) All currencies in the system had floating exchange rates.
B) All currencies were pegged at a fixed rate to the dollar.
C) All currencies were maintained by fixing their prices in terms of gold.
D) All currencies in the system were required to be gold convertible.

Question

Which of the following was true of the Bretton Woods system? 
A) All currencies in the system had floating exchange rates. 
B) All currencies were pegged at a fixed rate to the dollar. 
C) All currencies were maintained by fixing their prices in terms of gold. 
D) All currencies in the system were required to be gold convertible.

Quizplus · Accepted Answer

Under the Bretton Woods system, all currencies were pegged at a fixed rate to the US dollar. The US dollar, in turn, was fixed to gold at $35 per ounce. However, other currencies were not maintained by fixing their prices in terms of gold, and there were restrictions on gold convertibility for countries participating in the system. The exchange rates were not floating and were subject to occasional adjustments by participating countries.

Which of the Following Was True of the Bretton Woods