In the 1930s,confidence in the _____ was shattered because countries were devaluing their currencies at will in order to boost exports.
A) floating exchange rate system
B) gold standard system
C) fixed exchange system
D) Bretton Woods system
E) managed-float system

Question

Quizplus · Accepted Answer

The gold standard system was the dominant monetary system in the 1930s, and confidence in it was shattered due to the widespread devaluation of currencies. Under the gold standard, currencies were pegged to gold, and countries were supposed to maintain fixed exchange rates. However, many countries abandoned the gold standard and devalued their currencies to boost exports, causing instability in the system.

In the 1930s,confidence in the _____ Was Shattered Because Countries