One problem with the Bretton Woods System was that
A) the total number of US dollar reserves held by central banks was greater than US gold reserves.
B) some countries with overvalued currencies refused to devalue them.
C) in the early days of the system, many currencies were undervalued versus the US dollar.
D) gold discoveries caused worldwide inflation.

Question

Quizplus · Accepted Answer

The Bretton Woods System relied on the US dollar being backed by gold. However, over time, the amount of US dollars held by foreign central banks exceeded the US gold reserves, leading to doubts about the US's ability to convert dollars to gold, which was a fundamental issue of the system.

One Problem with the Bretton Woods System Was That