The Bretton Woods System Was Expected to Be More Stable

question 28

Multiple Choice

The Bretton Woods system was expected to be more stable than the gold standard because

• A)the world supply of gold had increased greatly by the time the Bretton Woods system was established.
• B)large trade deficits and surpluses would be unlikely to occur under the Bretton Woods system.
• C)fewer countries were involved in the Bretton Woods system than had been involved in the gold standard.
• D)the IMF was set up to be a lender of last resort.