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    The Bretton Woods monetary system was based on the fixed rate monetary system. It lasted between the years:
    Question



    The Bretton Woods monetary system was based on the fixed rate monetary system. It lasted between the years:

    A.

    1946 to 1974

    B.

    1944 to 1974

    C.

    1940 to 1974

    D.

    1944 to 1971

    Correct option is D

    The Bretton Woods system, established in 1944, pegged currencies to the U.S. dollar, convertible into gold at a fixed rate. It ended in 1971 when the U.S. suspended dollar-gold convertibility due to inflation and trade deficits, transitioning to floating rates.
    Information Booster: Bretton Woods was instrumental in creating financial institutions like the IMF and World Bank to promote global economic stability. Its collapse marked a new era of economic globalization and market-driven currencies.
    Additional Knowledge: The system was strained by the U.S. balance of payments deficit and inflationary pressures from the Vietnam War, leading to its demise.

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