Which of the following has some aspects of the pre-1973 Bretton Woods exchange rate system?
A) Pure "free float" exchange rate system
B) Dirty float exchange rate system
C) Nominal exchange rate system
D) Pegged exchange rate system
E) Real exchange rate system

Question

Quizplus · Accepted Answer

A pegged exchange rate system is similar to the pre-1973 Bretton Woods system because it involves fixing the value of a currency to another currency or a basket of currencies. Under Bretton Woods, the US dollar was fixed to gold, and other currencies were fixed to the US dollar. Similarly, in a pegged exchange rate system, a currency's value is fixed to another currency, such as with China's yuan being pegged to the US dollar.

Which of the Following Has Some Aspects of the Pre-1973