The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-No currency ever appreciated or depreciated under the Bretton Woods system as it was based on a system of fixed exchange rates.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-No currency ever appreciated or depreciated under the Bretton Woods system as it was based on a system of fixed exchange rates.

Quizplus · Accepted Answer

The figure and question refer to the Bretton Woods system, which did have fixed exchange rates. However, some currencies did experience appreciation or depreciation relative to others. For example, the value of the U.S. dollar relative to the British pound was fixed at $2.80 per pound, but the value of the dollar relative to the Japanese yen changed over time. So, the statement in the question is false.

The Figure Given Below Depicts the Foreign Exchange Market for British