Which postwar framework established IMF and World Bank to support international finance?

Which postwar framework established IMF and World Bank to support international finance?

• A. Bretton Woods system
• B. Leagues of Nations
• C. NATO
• D. Warsaw Pact

Answer: (A)

Postwar international finance relied on a framework that created the IMF and the World Bank to stabilize currencies and promote reconstruction and development. This came out of the Bretton Woods Conference in 1944, which established the International Monetary Fund to oversee short‑term balance‑of‑payments stability and provide emergency financial support, and the World Bank to fund reconstruction and long‑term development projects. This system also set up relatively fixed exchange rates anchored by the U.S. dollar and, indirectly, by gold. The other options don’t fit: the Leagues of Nations was an interwar effort before WWII; NATO is a military alliance formed for collective defense; and the Warsaw Pact was the Soviet‑led alliance on the opposite side of the Cold War.

Postwar international finance relied on a framework that created the IMF and the World Bank to stabilize currencies and promote reconstruction and development. This came out of the Bretton Woods Conference in 1944, which established the International Monetary Fund to oversee short‑term balance‑of‑payments stability and provide emergency financial support, and the World Bank to fund reconstruction and long‑term development projects. This system also set up relatively fixed exchange rates anchored by the U.S. dollar and, indirectly, by gold. The other options don’t fit: the Leagues of Nations was an interwar effort before WWII; NATO is a military alliance formed for collective defense; and the Warsaw Pact was the Soviet‑led alliance on the opposite side of the Cold War.