What did "Bretton woods system" involve?
Answer & explanation
Correct answer: option 4
The correct answer is option 4: Both 2 and 3
The Bretton Woods system involved:
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Pegging the value of all currencies to one currency (i.e., US dollar): Under the Bretton Woods system, other currencies were pegged to the US dollar, which was the primary reserve currency.
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U.S. dollar was pegged to the price of gold: The US dollar was convertible into gold at a fixed rate.