Under the Bretton Woods system,
A) there was an explicit set of rules about the conduct of international trade policies
B) each country was responsible for maintaining its exchange rate within 2.50 percent of the adopted par value by buying or selling foreign exchanges as necessary
C) the U.K. sterling pound was the only currency that was fully convertible to gold
D) each country established a par value in relation to the U.S. dollar, which was pegged to gold at $35 per ounce.

Question

Quizplus · Accepted Answer

Under the Bretton Woods system, each country established a par value in relation to the U.S. dollar, which was pegged to gold at $35 per ounce. Countries were responsible for maintaining their exchange rate within 2.50 percent of the adopted par value by buying or selling foreign exchanges as necessary. While the U.K. sterling was a key currency in the system, it was not the only fully convertible currency, and there were no explicit rules about international trade policies.

Under the Bretton Woods System