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The collapse of the Bretton Woods system marked: Select one: a. substituted the use of gold with the use of silver. O b. marked
The collapse of the Bretton Woods system marked: Select one: a. substituted the use of gold with the use of silver. O b. marked the end of fixed exchange rates and a move to floating exchange rates. O c. the beginning of the gold standard. O d. the end of floating exchange rates and a move to fixed exchange rates. e. the elimination of paper currencies.
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The detailed answer for the above question is provided below b marked the end of fixed exchange rates and a move to floating exchange rates The collapse of the Bretton Woods system marked the end of fixed exchange rates and a move to floating exchange rates The Bretton Woods system was established in the aftermath of World War II and created a framework of international economic cooperation It was based on the idea of fixed exchange rates which meant that each countrys currency was pegged to the US dollar This allowed countries to maintain stable exchange rates and promote international trade However the system became unsustainable due to the increasing cost of the Vietnam War the oil crisis of the 1970s and the resulting loss of confidence in the US dollar As a result the US dollar was no longer able to maintain the fixed exchange rate ...
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International economics
Authors: Robert J. Carbaugh
13th Edition
978-1439038949, 1439038945, 978-8131518823
