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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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