The ____ is the system linking national currencies and the monetary system.

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Detailed Solution

The International monetary system is the system linking national currencies and the monetary system.
The Bretton Woods system was introduced in the post-war era. It aimed at maintaining economic stability and full employment in the industrial world. It provided for the international monetary system that was based on the interlinking of currencies and monetary system It propounded a fixed exchange rates system. It means that the exchange rates of the currencies of different nations are fixed and the government is allowed to intervene in the system to preserve the movement of the exchange rates. For example, the Indian rupee had a fixed exchange rate for the US Dollar. Similarly, the Dollar rate was fixed on the basis of gold i.e. $35 per ounce of gold.

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