Practice question · True or false
Under Bretton Woods only the dollar was convertible to gold; other currencies were pegged to the dollar.
Hints
- How many currencies had a gold window?
- One, at 35 dollars an ounce.
Show the answer
True
Why
True. It was a gold-exchange standard: the dollar was fixed to gold at 35 dollars an ounce and every other currency pegged to the dollar. That put the whole system's credibility on US reserves, Triffin's dilemma, and it is why Nixon closing the gold window in 1971 ended the arrangement outright.
Practise The Golden Age of Capitalism
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More questions on The Golden Age of Capitalism
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