In 1944, an international agreement among many countries, known as the ....., called for fixed exchange rates between currencies. An exchange rate was set for each pair of currencies, and each countrys central bank was required to maintain its respective local currencys value within 1 percent of the agreed-upon exchange rates.

FINANCIAL MARKETS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

In 1944, an international agreement among many countries, known as the ____, called for fixed exchange rates between currencies. An exchange rate was set for each pair of currencies, and each country’s central bank was required to maintain its respective local currency’s value within 1 percent of the agreed-upon exchange rates.

A	Breeton Whoods Agreement
B	Bretton Woods Agreement
C	Smithsonian Agreement
D	Smithsanian Agreement

Explanation:

Detailed explanation-1: -Summary. The Bretton Woods Agreement established a system through which a fixed currency exchange rate could be created using gold as the universal standard. The agreement involved representatives from 44 nations and brought about the creation of the International Monetary Fund (IMF) and the World Bank.

Detailed explanation-2: -The Articles of Agreement of the International Monetary Fund were adopted at the United Nations Monetary and Financial Conference (Bretton Woods, New Hampshire) on July 22, 1944.

Detailed explanation-3: -The United Nations Monetary and Financial Conference was held in July 1944 at the Mount Washington Hotel in Bretton Woods, New Hampshire, where delegates from forty-four nations created a new international monetary system known as the Bretton Woods system.

Detailed explanation-4: -From the end of World War II until 1971, the major economies participated in the Bretton Woods system of fixed exchange rates in which countries pegged their currencies to the US dollar.

Detailed explanation-5: -On July 1, 1944, as the battles of the Second World War raged in Europe and the Pacific, delegates from forty-four nations met at the secluded Mount Washington Hotel in Bretton Woods, New Hampshire to participate in what became known as the Bretton Woods Conference.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS