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With which of the following was the Bretton Woods System NOT associated
Explanation
The Bretton Woods System, established at the 1944 United Nations Monetary and Financial Conference, was specifically designed to create a stable international monetary order after the Second World War [3]. It resulted in the creation of the 'Bretton Woods twins': the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) [2]. The IBRD was primarily tasked with financing the economic recovery and reconstruction of war-ravaged nations [5]. Crucially, the system was based on a fixed exchange rate regime where currencies were pegged to the U.S. dollar, which was in turn convertible to gold [8]. It did NOT involve a floating exchange rate system; in fact, the move toward floating rates only occurred after the collapse of the Bretton Woods system in the early 1970s [8].
Sources
- [1] India and the Contemporary World – II. History-Class X . NCERT(Revised ed 2025) > Chapter 3: The Making of a Global World > 4.1 Post-war Settlement and the Bretton Woods Institutions > p. 75
- [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > CHAPTER SUMMARY > p. 552
- [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > BRETTON WOODS INSTITUTIONS > p. 512
- [5] https://history.state.gov/milestones/1937-1945/bretton-woods
- [8] https://www.investopedia.com/terms/b/brettonwoodsagreement.asp