GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gold
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British Pound
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American Dollar
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Australian Dollar
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Detailed explanation-1: -Bretton woods is a system under which the currencies are pegged with dollar whereas under the gold standard the currencies are pegged to gold. The gold standard is a floating exchange rate system, whereas, the Bretton woods system was different because it was a fixed exchange rate system.
Detailed explanation-2: -The Bretton Woods System is a set of unified rules and policies that provided the framework necessary to create fixed international currency exchange rates. Essentially, the agreement called for the newly created IMF to determine the fixed rate of exchange for currencies around the world.
Detailed explanation-3: -End of Bretton Woods system In August 1971, U.S. President Richard Nixon announced the “temporary” suspension of the dollar’s convertibility into gold. While the dollar had struggled throughout most of the 1960s within the parity established at Bretton Woods, this crisis marked the breakdown of the system.