The Bretton Woods Conference accomplished all of the following except _____.

Question

making financial arrangements for the post-World War II world

establishing the International Monetary Fund

an agreement to “peg” foreign currencies to the U.S. dollar

establishing the World Bank

Answer 1

The Bretton Woods Conference accomplished all of the following except an agreement to “peg” foreign currencies to the U.S. dollar.

While the Bretton Woods system established fixed exchange rates that were tied to the U.S. dollar, it did not involve a direct agreement for all foreign currencies to be pegged to the dollar in the strict sense implied by the phrase. Instead, the system was based on a framework of fixed but adjustable exchange rates, with the U.S. dollar serving as a primary reserve currency linked to gold.