Which statement about Bretton Woods is true?

• A. A plan to restructure the U.S. tax system
• B. The gold standard was reaffirmed
• C. The IMF and World Bank were created, and the GATT later becomes the WTO
• D. The United States adopted a protectionist policy

Answer: (C)

Bretton Woods established a postwar international framework centered on fixed exchange rates anchored to the U.S. dollar and created institutions to manage money and trade. The statement that is true is that the IMF and World Bank were created, and the General Agreement on Tariffs and Trade (GATT) later evolved into the World Trade Organization. The IMF was designed to supervise the international monetary system and provide short-term financial help to countries facing balance-of-payments problems, while the World Bank (originally the IBRD) aimed to fund reconstruction and development. GATT was built to promote freer trade by reducing tariffs and barriers, and it later transformed into the WTO in 1995, expanding rules to cover services and intellectual property.

The other options don’t fit: Bretton Woods did not restructure the U.S. tax system, and while the system kept currencies tied to the dollar, it did not reaffirm the traditional gold standard in the way that phrasing suggests; the broader aim was to foster open trade and stability rather than adopt a protectionist policy.