Is it true that the US dollar commanded confidence as the world's principal currency initially in the post-second-war period?

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True

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answer is A.

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Detailed Solution

The above statement is true. The US dollar initially commanded confidence as the world's principal currency in the post-second-war period.
The Bretton Woods system is another name for the postwar global economic order. Financial operations for the IMF and the World Bank started in 1947. Key IMF and World Bank decisions are effectively subjected to US veto power. Exchange rates were predetermined under the Bretton Woods arrangement. In this arrangement, national currencies, like the rupee in India, were fixed at a fixed exchange rate to the dollar. The dollar was anchored to gold at a set price of $35 per ounce of gold.

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