The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Under the Bretton Woods system, international debts were settled in:
A)gold.
B)U.S. dollars.
C)British pounds.
D)silver.
E)German marks.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-Under the Bretton Woods system, international debts were settled in:
A)gold. 
B)U.S. dollars. 
C)British pounds. 
D)silver. 
E)German marks.

Quizplus · Accepted Answer

Under the Bretton Woods system, international debts were settled in U.S. dollars. This was because the U.S. had the largest gold reserves and the dollar was seen as a stable and reliable currency. Other countries pegged their currencies to the U.S. dollar under this system.

The Figure Below Shows the Demand (D) and Supply (S)