Final answer:
The Bretton Woods Agreement was formed to address post-WWII trading issues such as inadequate monetary reserves and unstable currencies, establishing the IMF and the World Bank to promote economic stability.
Step-by-step explanation:
To overcome the problems of inadequate monetary reserves and unstable currencies that plagued international trading before WWII, the Bretton Woods Agreement was formed. The Bretton Woods Conference, held in 1944, aimed to establish a new international monetary and financial order following the catastrophes of the Great Depression and World War II. It led to the creation of two pivotal institutions: the International Monetary Fund (IMF) and the World Bank, tasked with stabilizing the international economy and fixing currency exchange rates.
The Marshall Plan also played a significant role by providing USD 26 billion in war recovery aid to Europe and Japan between 1946 and 1949, helping to solve the issue of a lack of international liquidity. Additionally, while the Bretton Woods Agreement primarily addressed monetary concerns, discussions on international trade continued, eventually leading to the creation of General Agreement on Tariffs and Trade (GATT) and later the World Trade Organization (WTO).