NDA2025General AbilityGeneral StudiesActual
With which of the following was the Bretton Woods System NOT associated
Options
- AInternational Monetary Fund
- BEconomic recovery after the Second World War
- CInternational Bank for Reconstruction and Development
- DEstablishment of a monetary system based on floating exchange rate
Correct answer
D. Establishment of a monetary system based on floating exchange rate
Step-by-step solution
The Bretton Woods System was established in 1944 to rebuild the international economic system after the Second World War. It led to the creation of two major international institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD, now part of the World Bank). The system was based on fixed exchange rates, where currencies were pegged to the US dollar, which was in turn pegged to gold. It did not establish a monetary system based on floating exchange rates