GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Wells Agreement
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Bretton Woods Agreement
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Taylors Agreement
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None of the above
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Detailed explanation-1: -It was developed at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire, from July 1 to July 22, 1944.
Detailed explanation-2: -Solution(By Examveda Team) The currency convertibility concept in its original form originated in Bretton Woods Agreement.
Detailed explanation-3: -Currency convertibility can be defined as the ability to exchange one currency for another at a given conversion rate and in terms of the usability of a currency for foreign transactions.
Detailed explanation-4: -When there is currency convertibility, market exchange rate truly reflects the purchasing power of their currencies which is based on the prices & costs of goods in different countries. In a competitive environment, lower prices of goods which reflect the comparative advantage will enable countries to increase exports.