Which of the following observations is true of the Bretton Woods agree

QUESTION

Which of the following observations is true of the Bretton Woods agreement?

A. The participating countries were required to exchange their currencies for gold.

B. Devaluation was accepted as a tool of competitive trade policy.

C. The agreement called for a system of floating exchange rates.

D. For weak currencies, devaluation of up to 10 percent was allowed without any formal approval by the International Monetary Fund.

E. A fixed exchange rate system was deemed impractical.

ANSWER

D