Question

During Bretton Woods system most countries had

• A. Fixed Exchange Rate
• B. Pegged Exchange Rate
• C. Both (A) and (B)
• D. None of these

Hint:

Bretton Woods = Fixed rates, achieved by pegging currencies to the US dollar.

Answer 1

The Correct Option is C

The Bretton Woods system (1944-1971) was a system of fixed exchange rates. Under this system, the value of the U.S. dollar was fixed to gold, and the currencies of other member countries were pegged to the U.S. dollar at a fixed rate. A pegged exchange rate is a specific type of fixed exchange rate regime. Therefore, both terms are correct in describing the system.