The Bretton Woods System Was Abandoned in 1972 and Replaced

Multiple Choice

The Bretton Woods system was abandoned in 1972 and replaced by floating exchange rates. The reason this occurred was not due to

A) floating exchange rates being obviously better for all countries outside the Soviet bloc.
B) insufficient reserves to cope with balance of payments deficits.
C) the reluctance of countries to revalue, thus putting more pressure on deficit countries.
D) the Vietnam war causing large US deficits which in turn caused excess liquidity.