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

-The Bretton Woods System of exchange rates was established:
A)to solidify support for the then-existing gold standard.
B)to peg the worldwide price of silver to the price of gold.
C)in Europe before World War II to establish a flexible exchange rate regime.
D)in the United States in 1944 to develop a gold exchange standard.
E)by a mechanism that made gold the reserve currency of the system.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-The Bretton Woods System of exchange rates was established:
A)to solidify support for the then-existing gold standard. 
B)to peg the worldwide price of silver to the price of gold. 
C)in Europe before World War II to establish a flexible exchange rate regime. 
D)in the United States in 1944 to develop a gold exchange standard. 
E)by a mechanism that made gold the reserve currency of the system.

Quizplus · Accepted Answer

The Bretton Woods System was established in the United States in 1944 with the goal of developing a gold exchange standard. It aimed to create a stable international monetary system by pegging currencies to the value of gold and allowing for the exchange of dollars for gold at a fixed rate. The system was intended to facilitate international trade and economic growth, but it ultimately collapsed in the early 1970s due to unsustainable U.S. balance of payments deficits and speculative attacks on the dollar.

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