- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 7. Capital Flows and the FX Market
- Subject 2. Exchange Rate Regimes
CFA Practice Question
The Bretton Woods agreement ______
B. tied the value of foreign currencies to British sterling.
C. continued the existing international monetary system.
A. also established the International Monetary Fund.
B. tied the value of foreign currencies to British sterling.
C. continued the existing international monetary system.
Correct Answer: A
The IMF was part of the Bretton Woods system. Its role was to lend official reserves to countries experiencing short-term balance of payments deficits in order to help these countries maintain their exchange rates.
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