The Bretton Woods agreement called for
A)variable exchange rates.
B)fixed exchange rates.
C)freely floating exchange rates.
D)a set of "managed" floating exchange rates.
E)currency boards

Question

Quizplus · Accepted Answer

The Bretton Woods agreement established a system of fixed exchange rates, where the value of currencies was tied to the value of gold and the U.S. dollar. Governments were expected to maintain the exchange rate within a narrow margin by buying or selling currencies as needed. This system lasted from 1944 to 1971.

The Bretton Woods Agreement Called for