The Bretton Woods System:
A)allowed nation to change their par values when facing fundamental disequilibrium
B)allowed nations to change their par values when facing a temporary disequilibrium
C)did not allow nations to change their par exchange rates under any circumstance
D)allowed only deficit nations to change their par values,but not surplus nations

Question

Quizplus · Accepted Answer

The Bretton Woods System allowed nations to change their par values when facing fundamental disequilibrium, which referred to long-term imbalances in trade and payments that couldn't be corrected with short-term adjustments. This flexibility was supposed to prevent countries from resorting to competitive devaluations and protect the stability of the international monetary system.