NDA General Ability Question (2025) — Solution

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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. Therefore, the establishment of a monetary system based on floating exchange rates is not associated with the Bretton Woods System. Answer: Establishment of a monetary system based on floating exchange rate