ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Difference currencies were pegged to one currency (US dollar)
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US dollar were assigned gold value at a fixed price
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Parity between two currencies was determined by the quantity of gold contained in them
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All of these
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Detailed explanation-1: -The Bretton Woods system (1944–1970) was an adjustable peg system, with every country fixing their currencies to an anchor currency (the US dollar) and the value of the anchor currency was fixed to gold. It is also called the “gold exchange standard” system.
Detailed explanation-2: -Adjustable peg is a foreign-exchange rate policy in which the domestic currency is measured in terms of standard currency such as U.S. dollar, but can be regulated as per the dynamic market scenario. Such flexible adjustments increase a company’s potential in trade, especially in terms of export business.
Detailed explanation-3: -The correct answer is 1 only. The Bretton Woods Institutions are the World Bank and the International Monetary Fund (IMF). They were set up at a meeting of 43 countries in Bretton Woods, New Hampshire, the USA in July 1944.
Detailed explanation-4: -Solution(By Examveda Team) The Bretton Woods System called for fixed exchange rates against the US Dollar. The Bretton Woods agreement was created in a 1944 conference of all of the World War II Allied nations.
Detailed explanation-5: -The “pegged rate” or “par value” currency regime. The “reserve currency” Designing the IMF. Subscriptions and quotas. Financing trade deficits. More items