The anchoring feature of the Bretton Woods System was the
A) fixed value of the US dollar against gold.
B) fixed value of the rate of exchange of the US dollar and special drawing rights.
C) law of supply and demand applied to currencies.
D) tying of all currencies to the British pound to reduce the exchange rate fluctuations that occurred during the Great Depression.

Question

Quizplus · Accepted Answer

The anchoring feature of the Bretton Woods System was the fixed value of the US dollar against gold, where other countries' currencies were pegged to the US dollar, which was in turn pegged to gold at a fixed rate. This system aimed to promote international economic stability and prevent the competitive devaluations that contributed to the Great Depression.

The Anchoring Feature of the Bretton Woods System Was the