Under the Bretton Woods system,a fixed exchange rate supported by central banks was known as a(n)________ exchange rate.
A)par
B)equilibrium
C)fundamental
D)target

Question

Quizplus · Accepted Answer

Under the Bretton Woods system, countries would fix their exchange rates to the US dollar, which was in turn fixed to a fixed amount of gold. This fixed rate was known as the par value, or par exchange rate. Central banks would then intervene to maintain their currency’s exchange rate with the US dollar within a narrow range around the par value.

Under the Bretton Woods System,a Fixed Exchange Rate Supported by Central