Traders in nations abiding by rules of Bretton Woods found ways to avert restrictions on _______ by offshore banking and improper accounting reporting.
A) imports
B) capital controls
C) gold movements
D) interest rate changes

Question

Quizplus · Accepted Answer

The phrase "capital controls" refers to restrictions on the movement of money across borders, which was a key feature of the Bretton Woods system. Traders found ways to evade these restrictions by using offshore banks, which were located outside the jurisdiction of the capital controls, and by engaging in improper accounting practices to hide their transactions. The other options - imports, gold movements, and interest rate changes - were also regulated under Bretton Woods, but they do not directly relate to the issue of capital controls.

Traders in Nations Abiding by Rules of Bretton Woods Found