The International Monetary Fund was established during the Bretton Woods System to:
A)determine the rate of British pounds per ounce of gold.
B)determine which central banks were eligible to have a fixed exchange rate.
C)provide loans to central banks that did not have reserves to maintain fixed exchange rates.
D)try and move countries to floating exchange rates.

Question

Quizplus · Accepted Answer

The International Monetary Fund (IMF) was established to provide loans to central banks that did not have sufficient reserves to maintain fixed exchange rates. This was aimed at stabilizing the international monetary system and preventing currency crises. The IMF would lend money to countries in need in exchange for implementing certain economic policies aimed at restoring financial stability.

The International Monetary Fund Was Established During the Bretton Woods