The international monetary system created by the Bretton Woods Agreement collapsed because ________.
A) of its heavy dependence on the stability of the dollar
B) it was not accepted by a majority of the world's nations
C) it did not have the funds necessary for its functioning
D) it favored only the developed countries and was of no help to struggling nations

Question

Quizplus · Accepted Answer

The collapse of the Bretton Woods Agreement was mainly due to the heavy dependence on the stability of the dollar as the world's reserve currency. This system worked well as long as the US could maintain the value of the dollar, but as economic problems plagued the US in the 1960s and 1970s, its ability to maintain the dollar's value declined, leading to its collapse.

The International Monetary System Created by the Bretton Woods Agreement