The post-Bretton Woods system is a system of flexible exchange rate regimes with _____.
A) the Japanese yen as its common denominator
B) the American dollar as its common denominator
C) gold as its common denominator
D) no official common denominator

Question

The post-Bretton Woods system is a system of flexible exchange rate regimes with _____.
A) the Japanese yen as its common denominator 
B) the American dollar as its common denominator 
C) gold as its common denominator 
D) no official common denominator

Quizplus · Accepted Answer

The post-Bretton Woods system is characterized by flexible exchange rate regimes with no official common denominator. The system is based on a market-driven exchange rate, where the value of a currency is determined by the supply and demand in the foreign exchange market. This allows for more flexibility in adjusting to economic shocks and reduces the need for countries to hold large reserves of a particular currency as was required under the Bretton Woods system.

The Post-Bretton Woods System Is a System of Flexible Exchange