Which of the following observations is true of the Bretton Woods agreement?
A)The participating countries were required to exchange their currencies for gold.
B)Devaluation was accepted as a tool of competitive trade policy.
C)The agreement called for a system of floating exchange rates.
D)For weak currencies,devaluation of up to 10 percent was allowed without any formal approval by the International Monetary Fund.
E)A fixed exchange rate system was deemed impractical.

Question

Quizplus · Accepted Answer

The Bretton Woods agreement allowed for the devaluation of weak currencies by up to 10 percent without formal IMF approval to provide flexibility while maintaining overall fixed exchange rates.

Which of the Following Observations Is True of the Bretton