AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Anchoring the Bretton Woods system to the US dollar was logical because, by 1944, the United States had emerged as the world's dominant economic and industrial power after World War II. It held the largest gold reserves globally, making the dollar credible and stable. Since the dollar was pegged to gold at a fixed price of $35 per ounce, other currencies could reliably be pegged to it. The US also commanded effective control over key international institutions like the IMF and World Bank, reinforcing the dollar's central role.
Source: Chapter 3, Section 4.1 – Post-war Settlement and the Bretton Woods Institutions
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The passage doesn't explicitly state why the dollar was chosen over other currencies, but it provides key clues: the US held decisive power in the Bretton Woods institutions, the dollar was anchored to gold at a fixed rate, and the US was the dominant industrial economy. Examiners expect you to infer logically from these facts. Keep the answer focused on US economic dominance + gold backing + institutional control. Avoid padding with unrelated points about the Great Depression or decolonisation.