With reference to the Bretton Woods Conference of 1944 consider the following statements 1 It led to...........

Economic Affairs World Bank and IMF

Download Solution PDF

With reference to the Bretton Woods Conference of 1944, consider the following statements:

1. It led to the establishment of the International Monetary Fund (IMF) and World Bank.

2. It reestablished a system of fixed exchange rates.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master World Bank and IMF

Prepare through Micro-courses

Try Now

Explanation:

statements 1 and 2 are correct: The Bretton Woods Conference held in 1944 set up the International Monetary Fund (IMF) and World Bank and reestablished a system of fixed exchange rates. This system was different from the international gold standard in the choice of the asset in which national currencies would be convertible. That means a two tier system of convertibility was established. 1st tier guaranteed the convertibility of the dollar into gold at a fixed price of $35 per ounce of gold. The 2nd tier was about the commitment of the monetary authority of each IMF member participating in the system to convert their currency into dollars at a fixed price.