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Q.


Is it true that the Bretton Woods System was based on fixed exchange rates?

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a

True

b

False 

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Detailed Solution

The above statement is True.
The Bretton Woods System was based on fixed exchange rates. The International Monetary System, or the Bretton Woods System, was a system to link the national currencies and monetary system. It was based on a fixed exchange rate where all the currencies were pegged to the dollar at a fixed exchange rate, while the dollar was based on the rate of the gold, which was fixed at $35 per ounce.
 
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