Why was the Bretton Woods institution established?

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To promote international trade

To reconstruct the economy after Second World War

To improve the unfavourable balance of payments

All of the above

answer is D.

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Detailed Solution

The Bretton Woods institution was established to promote international trade, reconstruct the destruction caused to the economy during the Second World War and improve the unfavourable status of the non-member countries' balance of payments.
The World Bank and the International Monetary Fund are the Bretton Woods institutions, sometimes known as the Bretton Woods twins. They were established in July 1944 during a meeting of 43 countries in Bretton Woods, New Hampshire, USA. Member countries agreed to form institutions to address the reconstruction of the global financial system in the post-World War II era. By harmonising its members' monetary policies and ensuring exchange stability, the IMF would promote a stable environment for international trade. In addition, it would be able to provide short-term financial support to countries experiencing balance-of-payments challenges. The World Bank, on the other hand, would help countries improve their trading capability by lending money to war-torn countries.

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