Under the Bretton Woods system set up at the end of World War II, exchange rates...

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Question

Under the Bretton Woods system set up at the end of World War II, exchange rates...

Under the Bretton Woods system set up at the end of World War II, exchange rates were

Select one:

a. absolutely fixed (i.e., no deviations from parity were permitted).

b. permitted to vary 1% above or below parity.

c. permitted to vary 2.25% above or below parity.

d. completely flexible (i.e., continuous rate changes of any magnitude were permitted).

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Answer 1

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Answer:

All of the countries in the Bretton Woods agreement agreed to a fixed peg against the U.S. dollar with deviations of only 1% allowed

Hence option B

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