Under the Bretton Woods System,if the par rate per British pound-defined as United States (US)dollars per pound-was below its equilibrium value,then

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If the par rate per British pound is below its equilibrium value, it means that the demand for pounds is weaker than the supply of pounds. This imbalance in demand and supply would lead to downward pressure on the pound's value relative to the US dollar. To prevent the pound from depreciating further, the British central bank would have to intervene in the foreign exchange market by selling its reserves of US dollars and buying pounds. This would increase the demand for pounds and reduce the supply, thereby pushing up its value to its equilibrium level.

Under the Bretton Woods System,if the Par Rate Per British