Asked by Briana Flores on Jul 16, 2024
Verified
Which of the following lists of exchange-rate systems is arranged in proper historical order, from earliest to most current?
A) Bretton Woods system, gold standard, managed float
B) gold standard, managed float, Bretton Woods system
C) managed float, Bretton Woods system, gold standard
D) gold standard, Bretton Woods system, managed float
Bretton Woods System
A monetary management system that established the rules for commercial and financial relations among the world's major industrial states in the mid-20th century.
Gold Standard
A monetary system where a country's currency or paper money has a value directly linked to gold.
Managed Float
A currency exchange rate policy where a currency's value is allowed to fluctuate in response to foreign exchange market mechanisms, but the central bank may intervene to stabilize the currency if necessary.
- Recognize the historical evolution and the mechanisms of international exchange rate systems, including the gold standard and the Bretton Woods system.
Verified Answer
BB
Benjamin BustosJul 17, 2024
Final Answer :
D
Explanation :
The gold standard was used from the late 19th century until the early 20th century. The Bretton Woods system was established in 1944 and lasted until the early 1970s. After its collapse, the managed float system (also known as floating exchange rates) became more prevalent.
Learning Objectives
- Recognize the historical evolution and the mechanisms of international exchange rate systems, including the gold standard and the Bretton Woods system.