Final Answer:
Destabilizing speculation played a significant role in the breakdown of the Bretton Woods system through the action of purchasing overvalued currencies (Option B).
Step-by-step explanation:
The Bretton Woods system, established after World War II, pegged major currencies to the U.S. dollar, which, in turn, was pegged to gold. Destabilizing speculation occurred when investors began purchasing overvalued currencies, creating pressure on fixed exchange rates. As a result, countries faced challenges maintaining their currency values within the agreed-upon limits. The system's stability eroded, leading to currency devaluations and ultimately the abandonment of the gold standard in 1971.
Options A, C, and D are not aligned with the destabilizing speculation that contributed to the breakdown of Bretton Woods. The correct option is B, as purchasing overvalued currencies was a key factor in the system's demise.
Option B is the answer.