Correct Option: B

In 1945, the Bretton Woods Agreement Act was enacted. Under the Article of Agreement of the I.M.F, each member of the IMF was required to establish a par value for its currency expressed in terms of gold, and to take appropriate measures to permit within its territories exchange transactions between its own currency and those of other IMF members for the official settlement of international transactions. Only the dollar remained convertible into gold at a price of $35 per ounce. Each country decided what it wanted its exchange rate to be vis-à-vis the dollar and then calculated the gold par value of the currency based on that selected dollar exchange rate. All participating countries agreed to try to maintain the value of their currencies within 1 percent of the Par value by buying or selling currencies(or gold) as needed.