Question

Distinguish between the gold standard and the Bretton Woods system in determine the currency exchange rate.

Answer 1

Answer) The Bretton Woods system was a fixed exchange rate​ system, and on the other hand gold standard was a floating exchange rate system.

Under the Bretton Woods System, gold was considered as the basis for the U.S. dollar and all the other currencies were pegged to the U.S. dollar’s value.  Under the Bretton Woods system only the United States pledged to buy or sell gold at a fixed price. The central banks of all other members of the new Bretton Woods system pledged to buy and sell their currencies at a fixed rate against the dollar.

Under gold standard countries currency is directly linked to gold. Under the gold​ standard, all participating countries would buy and sell gold at a fixed price. It's not in use in present times.