As the only currency that could be converted into gold, the British po

QUESTION

As the only currency that could be converted into gold, the British pound occupied a central place in the fixed exchange rate system.

Indicate whether the statement is true or false.

ANSWER

FALSE
The system of fixed exchange rates established at Bretton Woods worked well until the late 1960s, when it began to show signs of strain. As the only currency that could be converted into gold, and as the currency that served as the reference point for all others, the dollar occupied a central place in the system.