Which of the following was the weakness of the Bretton Woods system?
A)It could be wrecked by heavy borrowings from the World Bank and the International Monetary Fund.
B)It could not work if the U.S.dollar was under speculative attack.
C)The inflexibility of the system resulted in high unemployment.
D)It forced fiscal and monetary discipline on participating nations.
E)It allowed the countries to engage in competitive currency devaluations.

Question

Quizplus · Accepted Answer

The Bretton Woods system relied on the United States to maintain the value of the dollar by backing it with gold reserves. However, if the value of the dollar was under speculative attack, it could not be sustained, and this weakness ultimately led to the breakdown of the system.

Which of the Following Was the Weakness of the Bretton