With which of the following was the Bretton Woods System NOT associated?
- A.International Monetary Fund
- B.Economic recovery after the Second World War
- C.International Bank for Reconstruction and Development
- D.Establishment of a monetary system based on floating exchange rate
Correct answer
Explanation
The correct answer is D, Establishment of a monetary system based on floating exchange rate. Bretton Woods set up fixed, not floating, exchange rates.
At the Bretton Woods Conference in New Hampshire, USA, in July 1944, 44 Allied nations agreed on a new post-war money order. Currencies were pegged to the US dollar, and the dollar was tied to gold at 35 dollars an ounce, so exchange rates stayed fixed and could change only by agreement. The system ended in the early 1970s, after which major currencies began to float.
A is wrong because the International Monetary Fund was one of the two bodies created at Bretton Woods.
B is wrong because rebuilding war-hit economies was the very purpose of the system.
C is wrong because the IBRD, the core of the World Bank, was the second body set up there.
Exam tip: Bretton Woods 1944 = IMF + IBRD (World Bank) + fixed dollar-gold exchange rates; floating rates came after it collapsed in 1971–73.
Practice Questions
View allWhich one of the following statements with regard to the National Rural Employment Guarantee Act, 2005 is correct ?
- A.It ensures 175 days of employment to needy persons in rural areas.
- B.It gives higher wages to women workers.
- C.People are generally given both skilled and unskilled jobs.
- D.This is implemented only in rural areas of India.
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As its name says, the Act guarantees work to households in rural areas; towns and cities are outside its scope.
Read the full explanation →A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as
- A.oligopoly
- B.imperfect competition
- C.monopolistic competition
- D.perfect competition
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Many sellers of an identical product, none of whom can change the price, is the definition of a perfectly competitive market.
Read the full explanation →Which one of the following approaches of human development was initially proposed by the International Labour Organisation (ILO) and emphasised on health, education, food, water supply, sanitation and housing?
- A.Welfare approach
- B.Basic needs approach
- C.Income approach
- D.Capability approach
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The International Labour Organisation put it forward in the 1970s, asking that every person first have the essentials of a decent life.
Read the full explanation →Which one of the following inputs is required in less quantity in case of non-farming activities ?
- A.Land
- B.Labour
- C.Capital
- D.Raw material
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Farming needs large areas of land, while most non-farm work, such as a shop, a dairy, transport or small manufacturing, can be carried out on very little land.
Read the full explanation →The Sukanya Samriddhi account for a girl child matures:
- A.Fifteen years from the date of opening
- B.Twenty-one years from the date of opening
- C.When the girl turns eighteen years of age
- D.After five years, like the National Savings Certificate
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The account is opened by a guardian in the name of a girl child before she completes ten years of age, deposits are made for the first fifteen years, and the account matures twenty-one years from the date it was opened; a part withdrawal is allowed for higher education after…
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